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.
4-bedroom, 3-bathroom house of 144 m², built in 1987, energy rating E. Located Montenegro parish, Faro municipality, Faro district. This property features a spacious garden area suitable for outdoor entertaining and includes an office space, ideal for remote work or study.
The valuation. The asking price of €675,000 is significantly above the fair value of €234,230, resulting in an excessive premium of €440,770 (65.3%). This property is overpriced and unlikely to attract offers reflective of its true market value.
Fair value modelled at €234,230 from the area baseline, adjusted for condition and location. Asking €675,000 sits €440,770 (65.3%) above — overpriced versus fair value.
Asking €675,000 versus the Montenegro, Faro, Faro area baseline of €247,248 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 (Condition 68 · Materials 62 · Room dimensions 66). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 75 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Montenegro, Faro, Faro
Area baseline €247,248 + condition -€25,875 + location +€12,857 = modelled fair value of €234,230 (€1,627/m²), a €440,770 (65.3%) gap versus the €675,000 asking price.
Short-term vacation rental This 4-bed house in Montenegro is not a suitable investment for short-term vacation rentals due to its significant 65.3% gap from fair value, leading to an overpriced assessment at €675,000. The current gross yield of 3.2% reflects a suboptimal return in a highly competitive rental market influenced by fluctuations in tourism demand. Long-term rental The property’s valuation considerably exceeds fair value, suggesting it may be overpriced for long-term rental opportunities with an attractive rental yield of 3.2%. Given the local economic reliance on tourism and a neighborhood score of 63/100, tenant quality may be unstable and affect occupancy rates. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unfavorable, as it's priced at €675,000, which is significantly above the fair value of €234,230. This 65.3% premium over fair value denotes an overpriced asset, limiting potential future appreciation and overall investment performance.
Economic Vulnerability Based on an economic stability score of 55/100, the property is at risk of experiencing a downturn due to potential economic fluctuations impacting tenant retention and rent collection rates.
