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, 5-bathroom house of 268 m², built in 1990, energy rating C. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: This property boasts a large garden with diverse fruit trees, and the versatile layout includes a separate entrance for a two-bedroom unit, ideal for rental income potential.
The valuation. The asking price of €720,000 is only 0.9% above the fair value of €713,752, indicating the property is fairly priced for the market. This slight premium suggests it is positioned well for potential buyers. Buy-to-flip angle. With an overall condition score of 58/100, strategic enhancements in specific areas could elevate aesthetic appeal, allowing for a profitable resale at a higher price point following renovations. The current market dynamics support a quick turnaround on investment. Buy-to-let angle. The estimated rental income of €2,040 per month yields a gross return of 3.4%, making it an attractive buy-and-hold opportunity, especially in the tourism-driven Algarve region. Steady demand can ensure sustainable cash flow for long-term investment strategies.
Fair value modelled at €713,752 from 6 comparable sales in the area. Asking €720,000 sits €6,248 (0.9%) above — overpriced versus fair value.
Asking €720,000 versus the Montenegro, Faro, Faro area baseline of €655,263 (€2,445/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 58/100 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 €655,263, adjusted for condition and micro-location, gives a modelled fair value of €713,752 (€2,663/m²), a €6,248 (0.9%) gap versus the €720,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 3df26b | Subject | €720,000 | €2,687 | — | 55 | 70 |
| estrada nacional 125. | Active | €570,000 | €2,727 | 1.5% | 65 | 72 |
| urbanização de Gambelas S / N | Active | €852,500 | €2,842 | 5.8% | 74 | 64 |
| Montenegro · 99f284 | Active | €900,000 | €2,045 | 23.9% | 70 | 51 |
| rua Professor Doutor Reis Cunha, 9 | Active | €849,950 | €2,599 | 3.3% | 90 | 71 |
| Median comp | €851,225 | €2,663 | 0.9% | 72 | 68 |
Short-term vacation rental The property’s fair value of €713,752 indicates that it is aligned with the market, presenting limited upside potential for short-term vacation rental returns. Given the 3.4% gross yield, the investment may not fully capitalize on the high tourism demand in the Algarve due to the tight price gap. Buy-and-hold With a fair valuation closely matching the asking price, this property may serve adequately as a long-term buy-and-hold investment, but significant appreciation is not expected in the near term. The 58/100 condition rating shows room for improvement, which could enhance its value over time but requires additional capital. Long-term rental The property’s close valuation to fair market value indicates a balanced investment scenario, yet the overall gross yield of 3.4% suggests limited cash flow from a long-term rental perspective. The neighbourhood quality rating of 70/100 reflects decent tenant quality, though low yields may hinder the attractiveness for long-term lease strategies.
Economic Vulnerability With an economic stability score of 50/100, there is a significant risk that economic downturns could adversely affect property value and demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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