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 apartment of 82 m², built in 2006. Located on rua de São Sebastião, Monchique parish, Monchique municipality, Faro district. Noteworthy Features: This apartment includes a generous balcony that provides stunning views of the surrounding Monchique hills, enhancing outdoor living space and overall appeal. Energy Rating: Unknown.
The valuation. The asking price of €250,000 sits €42,857 (14.6%) below the fair value of €292,857, indicating that the property is underpriced. This presents an attractive opportunity for prospective buyers looking for value in the current market.
Fair value modelled at €292,857 from 6 comparable sales in the area. Asking €250,000 sits €42,857 (14.6%) below — the upside to fair value.
Asking €250,000 versus the rua de São Sebastião area baseline of €270,761 (€3,302/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 is below the parish average, reducing 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 €270,761, adjusted for condition and micro-location, gives a modelled fair value of €292,857 (€3,571/m²), a €42,857 (14.6%) gap versus the €250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de São Sebastião | Subject | €250,000 | €3,049 | — | 70 | 69 |
| Monchique · 938796 | Active | €235,000 | €2,938 | 3.7% | 62 | 70 |
| Monchique · 6c7981 | Active | €185,000 | €3,700 | 21.4% | 60 | 63 |
| rua de São Sebastião | Active | €235,000 | €4,123 | 35.2% | 74 | 60 |
| Monchique · 261fa4 | Active | €440,000 | €2,933 | 3.8% | 64 | 53 |
| Median comp | €235,000 | €3,319 | 8.9% | 63 | 62 |
Short-term vacation rental The property has significant short-term rental potential due to its close proximity to tourist attractions in the Algarve region, appealing to seasonal visitors. With a fair value exceeding the listing price by 14.6%, it presents an attractive opportunity for investors looking to generate income from vacation rentals. Long-term rental While the property currently yields 0% gross, the local market's demand from stable seasonal employment suggests it can perform well with long-term tenants. The gap against fair value also indicates potential for capital appreciation in the long-term rental market. Buy-and-hold Investing in this property for a buy-and-hold strategy could yield significant returns, particularly as the demand in the Monchique area is supported by a generally safe community. With the current valuation underpricing it relative to its fair value by 14.6%, this approach may enhance overall returns over time.
Economic Vulnerability The property's economic stability score of 60/100 indicates a moderate risk of economic downturn affecting rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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