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, 1-bathroom house of 52 m², energy rating F. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: This property offers potential for vertical expansion, allowing the addition of a first floor to enhance its usable space and value, subject to building permits.
The valuation. The asking price of €270,000 stands significantly above the fair value of €61,895. At a premium of €208,105 (77.1%), this property is clearly overpriced.
Fair value modelled at €61,895 from the area baseline, adjusted for condition and location. Asking €270,000 sits €208,105 (77.1%) above — overpriced versus fair value.
Asking €270,000 versus the Montenegro, Faro, Faro area baseline of €178,984 (€3,442/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 33/100 (Condition 25 · Materials 30 · Room dimensions 42). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Montenegro, Faro, Faro
Area baseline €178,984 + condition -€34,531 + location +€7,143 = modelled fair value of €61,895 (€1,190/m²), a €208,105 (77.1%) gap versus the €270,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 9387ad | Subject | €270,000 | €5,192 | — | 25 | 70 |
| Montenegro · e40add | Active | €2,000,000 | €12,048 | 132.0% | — | 62 |
| Faro (Sé e São Pedro) · 001a66 | Active | €350,000 | €4,861 | 6.4% | 70 | 63 |
| Faro (Sé e São Pedro) · 4a81cc | Active | €230,000 | €3,433 | 33.9% | 62 | 60 |
| Montenegro · 956ae3 | Active | €675,000 | €4,688 | 9.7% | 68 | 63 |
| Median comp | €512,500 | €4,775 | 8.0% | 68 | 63 |
Short-term vacation rental This property is overpriced by 77.1% compared to its fair value, which raises concerns about the viability of generating competitive short-term rental yields in the desirable Algarve tourist area. The gross yield of 4.2% does not compensate for the significant gap from fair value and could deter potential vacation rental investors looking for healthier returns. Long-term rental With a fair value of €61,895, the property’s current listing price implies a lack of affordability for prospective tenants, especially in a neighborhood scoring only 70/100 on tenant quality. Consequently, the expected gross yield of 4.2% may not be sufficient to attract long-term renters given the stark overvaluation. Buy-and-hold Investing in this property as a buy-and-hold strategy carries inherent risks due to its current price being 77.1% above fair value, making it a less attractive option for investors looking to secure long-term appreciation. Additionally, with the property condition rated only 33/100, maintenance costs could further impact returns over time, emphasizing its overpriced status.
Economic vulnerability The scores of 65/100 in both economic and tenant stability indicate a moderate risk of economic fluctuations that could lead to decreased rental income or tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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