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, 2-bathroom villa of 210 m², built in 1970, energy rating D. Located Alferce parish, Monchique municipality, Faro district. Noteworthy Features: This villa offers a fully self-sufficient water system with year-round spring flow, dual-stage filtration, and an independent photovoltaic energy system, ensuring complete autonomy and sustainability.
The valuation. The asking price of €385,000 is significantly below the fair value of €543,478, presenting an opportunity with a difference of €158,478 (29.2%). Verdict: underpriced. Buy-to-flip angle. This property can be renovated with lower-cost modifications to capitalize on current market demand, aiming for a resale at a higher price following improvements. Buy-to-let angle. Seasonal vacation rentals can thrive in Algarve's tourism hotspot, maximizing rental income potential despite current low yield estimates, making it a strong buy-and-hold candidate for investors.
Fair value modelled at €543,478 from 6 comparable sales in the area. Asking €385,000 sits €158,478 (29.2%) below — the upside to fair value.
Asking €385,000 versus the Alferce, Monchique, Faro area baseline of €313,373 (€1,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €313,373, adjusted for condition and micro-location, gives a modelled fair value of €543,478 (€2,588/m²), a €158,478 (29.2%) gap versus the €385,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alferce · b3291a | Subject | €385,000 | €1,833 | — | 62 | 61 |
| Silves · 23f3be | Active | €750,000 | €2,131 | 16.2% | 75 | 70 |
| Monchique · 261fa4 | Active | €440,000 | €2,933 | 60.0% | 64 | 53 |
| Marmelete · 9116e2 | Active | €890,000 | €2,225 | 21.4% | 70 | 63 |
| autoestrada N266-3 | Active | €1,250,000 | €2,588 | 41.2% | 78 | 61 |
| Median comp | €820,000 | €2,407 | 31.3% | 73 | 62 |
Short-term vacation rental With a fair value estimated significantly above the listing price, this 4-bed villa in Alferce presents an attractive opportunity for short-term vacation rentals, benefiting from the region's robust tourism market. The lack of gross yield indicates potential for future revenue growth as occupancy increases in line with seasonal demand. Long-term rental Although currently yielding 0%, this villa's pricing relative to fair value suggests that it could be an appealing investment for long-term rentals in a location known for its tourist traffic and seasonal fluctuations. The property's condition rating of 68/100 indicates it may require some updates, but the overall value proposition remains strong due to its pricing. Buy-and-hold The significant gap between the listing price and fair value highlights an opportunity to buy-and-hold this villa, promising capital appreciation as the market evolves. While the neighbourhood quality ratings show room for improvement, the potential for growth in both property value and rental demand aligns with a strategic long-term investment approach.
Economic Vulnerability The combined economic stability score of 55 and tenant stability score of 58 suggests potential challenges in maintaining consistent rental income, increasing the risk of vacancy or reduced rental rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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