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, 2-bathroom house of 260 m², energy rating A+. Located on autoestrada N266, Monchique parish, Monchique municipality, Faro district. Noteworthy Features: The property includes a splendid private terrace perfect for outdoor leisure activities, and features a dedicated area for firewood storage, enhancing its functionality and appeal.
The valuation. The asking price of €395,000 is significantly below the fair value of €846,161, representing a discount of €451,161 (53.3%). This property is priced attractively for potential investors.
Fair value modelled at €846,161 from 6 comparable sales in the area. Asking €395,000 sits €451,161 (53.3%) below — the upside to fair value.
Asking €395,000 versus the autoestrada N266 area baseline of €750,951 (€2,888/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €750,951, adjusted for condition and micro-location, gives a modelled fair value of €846,161 (€3,254/m²), a €451,161 (53.3%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| autoestrada N266 | Subject | €395,000 | €1,519 | — | 72 | 74 |
| jardim Exuberante em Caldas de Monchique | Active | €849,000 | €1,904 | 25.3% | 75 | 71 |
| Monchique · 6fb8fb | Active | €1,990,000 | €6,525 | 329.5% | 88 | 68 |
| Monchique · 0dcc8b | Active | €250,000 | €2,717 | 78.9% | 80 | 71 |
| rua do Doutor Samora Gil, 26 | Active | €250,000 | €3,571 | 135.1% | 80 | 63 |
| Median comp | €549,500 | €3,144 | 106.9% | 80 | 70 |
Short-term vacation rental The property’s value is significantly below the fair value at €395,000, presenting an attractive opportunity for short-term vacation rentals in a region that benefits from tourism. Given its proximity to beaches and tourist services, demand for this type of accommodation is likely to increase, capitalizing on the area's tourism-centric economy. Buy-and-hold Acquiring this property represents a strategic buy-and-hold investment given its fair value of €846,161 and the current listing price of €395,000, reflecting a substantial potential for future appreciation. The resilient demand driven by tourism and the attractive neighborhood profile supports a long-term value growth strategy. Long-term rental With a notable gap between the asking price and the fair value, this property can effectively serve as a long-term rental investment in a region characterized by thriving tourism. Although the property currently generates a 0% gross yield, the strong housing demand can lead to increased rental opportunities as market conditions evolve.
Economic Dependency The Economic stability score of 60/100 suggests a moderate vulnerability to economic fluctuations, which could impact 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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