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.
2-bedroom, 2-bathroom country_house of 150 m², energy rating D. Located Monchique parish, Monchique municipality, Faro district. Unique Feature: The property boasts hand-built granite terraces over 100 years old, exceptionally fertile and irrigated by gravity, enhancing its distinct character and agricultural potential. Additional Features: A private spring, clay sauna, and diverse fruit trees support a self-sufficient lifestyle.
The valuation. The asking price of €440,000 exceeds the fair value of €244,703 by €195,297, representing a significant overvaluation of 44.4%. This suggests the property may not provide a good return on investment based on current market pricing.
Fair value modelled at €244,703 from the area baseline, adjusted for condition and location. Asking €440,000 sits €195,297 (44.4%) above — overpriced versus fair value.
Asking €440,000 versus the Monchique, Monchique, Faro area baseline of €247,200 (€1,648/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 64 · Materials 72 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 53/100 (Housing Market 58 · Amenities 55 · Economic 52 · Tenant Quality 48). Strong amenities and housing-market momentum support a premium to baseline.
Monchique, Monchique, Faro
Area baseline €247,200 + condition -€15,937 + location +€3,091 = modelled fair value of €244,703 (€1,631/m²), a €195,297 (44.4%) gap versus the €440,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monchique · 261fa4 | Subject | €440,000 | €2,933 | — | 64 | 53 |
| rua do Doutor Samora Gil, 26 | Active | €250,000 | €3,571 | 21.8% | 80 | 63 |
| rua do Doutor Samora Gil, 26 | Active | €250,000 | €3,571 | 21.8% | 80 | 63 |
| rua de São Sebastião | Active | €235,000 | €4,123 | 40.6% | 74 | 60 |
| herdade Monchique | Active | €180,000 | €2,571 | 12.3% | — | 63 |
| Median comp | €242,500 | €3,571 | 21.7% | 80 | 63 |
Short-term vacation rental Despite being situated in a region known for tourism and seasonal activities, this property at €440,000 is significantly overpriced compared to its fair value of €244,703, making it a risky investment for short-term rentals. Furthermore, the gross yield of 0% indicates that there is no immediate income potential to justify the high asking price. Buy-and-hold Investing in this property as a long-term buy-and-hold strategy would likely yield disappointing returns, given its current market valuation and the gap of 44.4% from fair value. Additionally, the low condition score of 68/100 and poor neighborhood rating of 53/100 further diminish the appeal of holding this asset long-term. Value-add renovation While the concept of value-add renovation may initially seem attractive, purchasing this property at €440,000 is not justified by its fair value of €244,703, indicating it is overpriced. The necessary renovations to improve the property would require significant additional investment, coupled with the low yield, making it a less appealing opportunity for value enhancement.
Economic and Tenant Instability The property faces risks due to an economic stability score of 52/100 and a tenant stability score of 48/100, indicating potential challenges in maintaining reliable income streams and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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