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 house of 50 m², built in 1970. Located Monchique parish, Monchique municipality, Faro district. Noteworthy Features: The property includes a borehole for efficient irrigation and maintenance, along with traditional terraces ideal for cultivating fruit trees and small agricultural projects.
The valuation. The asking price of €185,000 is significantly above the fair value of €80,392, reflecting an overpricing of €104,608 (56.5%). Such a markup is not justified given the property's overall condition and local market comparables.
Fair value modelled at €80,392 from the area baseline, adjusted for condition and location. Asking €185,000 sits €104,608 (56.5%) above — overpriced versus fair value.
Asking €185,000 versus the Monchique, Monchique, Faro area baseline of €82,400 (€1,648/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 (Condition 60 · Materials 67 · Room dimensions 64). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Monchique, Monchique, Faro
Area baseline €82,400 + condition -€9,922 + location +€4,464 = modelled fair value of €80,392 (€1,608/m²), a €104,608 (56.5%) gap versus the €185,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monchique · 6c7981 | Subject | €185,000 | €3,700 | — | 60 | 63 |
| rua de São Sebastião | Active | €235,000 | €4,123 | 11.4% | 74 | 60 |
| rua Portela Baixa, 1 | Active | €590,000 | €6,556 | 77.2% | — | 74 |
| Monchique · 0dcc8b | Active | €250,000 | €2,717 | 26.6% | 80 | 71 |
| herdade Monchique | Active | €180,000 | €2,571 | 30.5% | — | 63 |
| Median comp | €242,500 | €3,420 | 7.6% | 77 | 67 |
Short-term vacation rental This 1-bed house in Monchique, listed at €185,000, is overpriced by 56.5% compared to its fair value of €80,392, which restricts potential profitability for short-term rental investors. With a gross yield of only 4.5%, the elevated entry cost significantly undermines the investment's appeal in a tourism-driven market. Buy-and-hold Investing in this property as a buy-and-hold asset is questionable, given its significant markup of 56.5% over fair value, resulting in a diminished potential for appreciation. The property’s condition rating of 62/100 does not justify the high asking price, especially when considering future maintenance costs. Long-term rental This home poses risks as a long-term rental investment due to its €185,000 listing price, which is excessively above the fair value of €80,392, creating potential cash flow challenges. Although the location enjoys low crime and decent tenant quality, the yield of 4.5% does not compensate for the inflated purchase price. Not ideal for: Student housing, Luxury market, Industrial investment This property is unsuitable for student housing and the luxury market, given its high asking price and condition ratings that fall below ideal thresholds. Additionally, the limited space and pricing make it unrealistic for industrial investment purposes, further highlighting its misalignment with these strategies.
Economic Vulnerability With an economic stability score of 55/100, the property is at risk of fluctuating local economic conditions that may affect tenant occupancy and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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