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.
3-bedroom, 2-bathroom house of 213 m², built in 1964, energy rating F. Located on rua Francisco Furtado, 26, Marmelete parish, Monchique municipality, Faro district. This property features a versatile ground floor commercial space, ideal for multiple uses such as a workspace or yoga classroom, alongside breathtaking views of the surrounding fields.
The valuation. The asking price of €395,000 is significantly below the fair value of €657,009, representing an attractive discount of €262,009 (66.3%). This positioning indicates a strong potential for future appreciation. Buy-to-flip angle. The buy-to-flip strategy aims to enhance the property with upgraded appliances and finishes, allowing for a profitable resale in a competitive market, capitalizing on the strong tourism demands in the Algarve region. Buy-to-let angle. Given the strong tourist influx, the property can be utilized as a short-term vacation rental, generating attractive rental income despite the current gross yield estimated at 0%, with substantial potential for growth.
Fair value modelled at €657,009 from the area baseline, adjusted for condition and location. Asking €395,000 sits €262,009 (66.3%) below — the upside to fair value.
Asking €395,000 versus the rua Francisco Furtado, 26 area baseline of €332,280 (€1,560/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 75 · Materials 72 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Francisco Furtado, 26
Area baseline €332,280 + condition -€4,992 + location +€27,900 = modelled fair value of €657,009 (€3,085/m²), a €262,009 (66.3%) gap versus the €395,000 asking price.
Short-term vacation rental The property in Marmelete, Monchique, is positioned in a prime tourist area on the Algarve coast, making it an attractive option for short-term vacation rentals. With a current listing price of €395,000—66.3% below its fair value of €657,009—this investment offers significant upside potential. Long-term rental Given the property's favorable location and the influence of tourism on the local economy, it is well-suited for long-term rental strategies despite the current gross yield of 0%. At €395,000, which is 66.3% less than the fair value, it presents an opportunity to secure a property with promising future rental income. Buy-and-hold Investing in this 3-bed house for buy-and-hold is a strategic move, considering its valuation at €395,000 versus a fair value of €657,009, indicating a 66.3% gap. The property’s condition score of 74/100 further supports the potential for appreciation as the local economy continues to thrive through tourism.
Economic Vulnerability The property has a low economic stability score of 55/100, indicating a heightened risk of economic fluctuations affecting tenant retention and rent collection.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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