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.
1-bedroom, 1-bathroom house of 112 m², built in 1970, energy rating F. Located Marmelete parish, Monchique municipality, Faro district. The property includes a unique small annex featuring a traditional bread oven, enhancing its rustic charm and offering a distinctive feature for potential culinary enthusiasts.
The valuation. The asking price of €230,000 is significantly below the fair value of €285,179, indicating the property is underpriced by €55,179 (24.0%). This presents a compelling buying opportunity for investors.
Fair value modelled at €285,179 from the area baseline, adjusted for condition and location. Asking €230,000 sits €55,179 (24.0%) below — the upside to fair value.
Asking €230,000 versus the Marmelete, Monchique, Faro area baseline of €174,720 (€1,560/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 36/100 (Condition 30 · Materials 35 · Room dimensions 45). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Marmelete, Monchique, Faro
Area baseline €174,720 + condition -€68,250 + location +€20,005 = modelled fair value of €285,179 (€2,546/m²), a €55,179 (24.0%) gap versus the €230,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Marmelete · ba3cbd | Subject | €230,000 | €2,054 | — | 30 | 65 |
| autoestrada M1067 | Active | €140,000 | €933 | 54.6% | — | 61 |
| Marmelete · 90d980 | Active | €365,000 | €3,925 | 91.1% | — | 70 |
| Marmelete · 6d52dd | Active | €365,000 | €3,925 | 91.1% | 68 | 64 |
| rua Nova S / N | Active | €330,000 | €3,626 | 76.6% | 45 | 64 |
| Median comp | €347,500 | €3,776 | 83.9% | 57 | 64 |
Short-term vacation rental This property presents a significant opportunity for short-term vacation rentals given its location in Algarve, a region renowned for its tourism. With a current fair value gap of 24.0%, the investment could yield substantial returns as the property is underpriced relative to market potentials. Family rental The house's more spacious layout and moderate condition make it suitable for family rentals, catering to the demand for larger living spaces in the appealing Monchique area. The 0% gross yield presently indicates a strong potential for rental income growth as the market adjusts to the underpricing. Buy-and-hold Investing in this property for a buy-and-hold strategy is appealing as the fair value exceeds the listing price significantly, suggesting potential appreciation over time. Holding this property could leverage the positive economic conditions in the Algarve, particularly as tourism continues to fuel demand for rental housing. Not ideal for: Student housing, Luxury market The property holds limited appeal for student housing due to its location and size, which is not aligned with student preferences for shared accommodations. Additionally, the luxury market is not a fit, given the home's condition and neighborhood rating which fall short of luxury standards.
Economic Downturn Risk The economic stability score of 60/100 indicates a potential vulnerability to economic downturns, which could negatively impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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