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 country_house of 57 m². Located on rua de São Sebastião, Monchique parish, Monchique municipality, Faro district. Noteworthy Feature: The property boasts a charming traditional tank on the terrace, ideal for summer cooling, enhancing its rustic character while remaining just steps from Monchique's village center.
The valuation. The asking price of €235,000 exceeds the fair value of €104,634 by €130,366, representing a 55.5% premium. This property is currently overpriced in the market.
Fair value modelled at €104,634 from the area baseline, adjusted for condition and location. Asking €235,000 sits €130,366 (55.5%) above — overpriced versus fair value.
Asking €235,000 versus the rua de São Sebastião area baseline of €97,869 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 74 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 60/100 (Housing Market 70 · Amenities 60 · Economic 45 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua de São Sebastião
Area baseline €97,869 + condition +€2,850 + location +€3,915 = modelled fair value of €104,634 (€1,836/m²), a €130,366 (55.5%) gap versus the €235,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de São Sebastião | Subject | €235,000 | €4,123 | — | 74 | 60 |
| rua do Doutor Samora Gil, 26 | Active | €250,000 | €3,571 | 13.4% | 80 | 63 |
| rua do Doutor Samora Gil, 26 | Active | €250,000 | €3,571 | 13.4% | 80 | 63 |
| Monchique · 261fa4 | Active | €440,000 | €2,933 | 28.9% | 64 | 53 |
| herdade Monchique | Active | €180,000 | €2,571 | 37.6% | — | 63 |
| Median comp | €250,000 | €3,252 | 21.1% | 80 | 63 |
Short-term vacation rental The property is overpriced at €235,000, compared to a fair value of €104,634, resulting in a 55.5% premium that undermines its potential as a short-term vacation rental. While the Algarve's tourism influence is strong, the property’s yield of 3.5% gross does not justify the elevated price. Long-term rental At €235,000, the property exceeds its fair value by 55.5%, making it an unattractive option for long-term rental investments. Given the yield of 3.5% gross and a neighborhood score of 60/100, the anticipated rental income does not align with the high purchase price. Buy-and-hold Investing in this property as a buy-and-hold strategy is less appealing due to its overpriced nature, sitting significantly above the fair value of €104,634. The long-term appreciation potential is compromised by the current valuation and the gross yield of 3.5%, which is underwhelming in this market context.
Economic Instability Risk The low economic stability score of 45/100 indicates a heightened risk of economic downturns impacting property values and tenant demand.
