This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
7-bedroom, 7-bathroom house of 255 m², energy rating B. Located Montenegro parish, Faro municipality, Faro district. Notable features include a complete home automation system and a heated saltwater pool, enhancing both comfort and energy efficiency for year-round enjoyment.
The valuation. The asking price of €1,500,000 is significantly above the fair value of €500,752, creating a discrepancy of €999,248 (66.6%). Verdict: overpriced. Buy-to-flip angle. A buy-to-flip strategy may be challenging due to the high asking price and the need for substantial price reductions to achieve profitability. Buy-to-let angle. With a gross yield of 0%, this property is not suitable for rental income strategies as it stands, particularly given its pricing in a mixed neighbourhood.
Fair value modelled at €500,752 from the area baseline, adjusted for condition and location. Asking €1,500,000 sits €999,248 (66.6%) above — overpriced versus fair value.
Asking €1,500,000 versus the Montenegro, Faro, Faro area baseline of €437,835 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Montenegro, Faro, Faro
Area baseline €437,835 + condition +€27,891 + location +€35,027 = modelled fair value of €500,752 (€1,964/m²), a €999,248 (66.6%) gap versus the €1,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 4201c3 | Subject | €1,500,000 | €5,882 | — | 75 | 70 |
| Montenegro · 2620bc | Active | €1,500,000 | €5,882 | 0% | 80 | 63 |
| Montenegro · 0016d4 | Active | €945,000 | €4,565 | 22.4% | 80 | 63 |
| avenida da Republica, 180 | Active | €1,850,000 | €5,441 | 7.5% | 80 | 73 |
| rua Professor Doutor Reis Cunha, 9 | Active | €849,950 | €2,599 | 55.8% | 90 | 71 |
| Median comp | €1,222,500 | €5,003 | 14.9% | 80 | 67 |
Short-term vacation rental The analyzed property is overpriced, with a significant gap of 66.6% compared to its fair value of €500,752, which undermines its potential for short-term rental returns. Given the lack of gross yield and the average rating of the neighborhood, it will struggle to attract the typical vacation rental clientele in the highly competitive Algarve market. Long-term rental This 7-bed house is overpriced, making it a less favorable investment for long-term rental opportunities, especially with a gross yield of 0%. The high asking price in relation to the fair value raises concerns about tenant demand and overall sustainability in the local rental market. Buy-and-hold As a buy-and-hold investment, the property’s valuation is significantly inflated by 66.6% over its fair value of €500,752, posing a risk to long-term capital appreciation. The combination of zero gross yield and average neighborhood ratings further complicates the case for maintaining this asset in an investment portfolio over the long term.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of potential fluctuations in local economic conditions affecting property value and rental income stability.
