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.
5-bedroom, 3-bathroom country_house of 400 m², built in 1951, energy rating D. Located Marmelete parish, Monchique municipality, Faro district. Unique Feature: This property includes an indoor yoga room and significant potential for development, allowing expansion to 1000 m² for tourism purposes amidst stunning mountain views and ample outdoor space.
The valuation. The asking price of €890,000 is significantly below the fair value of €1,253,972, indicating an impressive discrepancy of €363,972 (40.9%). The property is currently subpriced, making it an appealing investment opportunity.
Fair value modelled at €1,253,972 from the area baseline, adjusted for condition and location. Asking €890,000 sits €363,972 (40.9%) below — the upside to fair value.
Asking €890,000 versus the Marmelete, Monchique, Faro area baseline of €624,000 (€1,560/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 70 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Marmelete, Monchique, Faro
Area baseline €624,000 + condition +€1,250 + location +€61,922 = modelled fair value of €1,253,972 (€3,135/m²), a €363,972 (40.9%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Marmelete · 9116e2 | Subject | €890,000 | €2,225 | — | 70 | 63 |
| autoestrada N266-3 | Active | €1,250,000 | €2,588 | 16.3% | 78 | 61 |
| Monchique · 389984 | Active | €1,250,000 | €2,588 | 16.3% | 82 | 59 |
| rua Francisco Furtado, 26 | Active | €395,000 | €1,854 | 16.7% | 75 | 61 |
| Odeceixe · 6eba5b | Active | €1,100,000 | €7,383 | 231.8% | — | 60 |
| Median comp | €1,175,000 | €2,588 | 16.3% | 78 | 61 |
Long-term rental The property in Marmelete presents a unique opportunity for long-term rental, particularly due to its spacious layout and proximity to rural amenities. With a fair value significantly higher than the listing price, this investment could yield secure tenancy from a mixed demographic in the region. Short-term vacation rental Given the appeal of the Algarve region for tourism, this property could serve as an attractive short-term vacation rental. The current price offers an opportunity to capitalize on the desirable location, while the demand from families and tourists potentially increases occupancy rates and returns. Buy-and-hold Investing in this property as a buy-and-hold strategy could be prudent, considering its fair value shows a considerable gap that suggests significant appreciation potential. Holding this asset in a mixed-use neighbourhood may provide long-term financial benefits and capitalize on the region’s growing popularity. Not ideal for: The property is not suitable for student housing or the luxury market due to its rural setting and the general demographic profile of the area.
Tenant turnover risk The combined economic stability score of 55 and tenant stability score of 60 indicates a potential risk of higher tenant turnover, which could impact rental income and lead to increased vacancy rates during transitions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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