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.
3-bedroom, 2-bathroom house of 225 m², built in 1986, energy rating D. Located Montenegro parish, Faro municipality, Faro district. Property Features: The house boasts a stunning outdoor terrace perfect for entertaining, along with an integrated smart home system enhancing convenience and energy efficiency throughout the living space.
The valuation. The asking price of €749,000 is significantly below the fair value of €1,040,931, representing a compelling discount of €291,931 (28.0%). Verdict: underpriced. Buy-to-flip angle. With strategic renovations, the potential resale value can be optimized for a quicker return on investment, capitalizing on the neighborhood’s seasonal demand. Buy-to-let angle. The property offers a gross yield of 3.5%, with an estimated monthly rental income of €2,185, making it suited for family rentals or a short-term vacation rental strategy given its prime location in Algarve.
Fair value modelled at €1,040,931 from 6 comparable sales in the area. Asking €749,000 sits €291,931 (28.0%) below — the upside to fair value.
Asking €749,000 versus the Montenegro, Faro, Faro area baseline of €963,932 (€4,284/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €963,932, adjusted for condition and micro-location, gives a modelled fair value of €1,040,931 (€4,626/m²), a €291,931 (28.0%) gap versus the €749,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 3d98bf | Subject | €749,000 | €3,329 | — | 77 | 65 |
| Faro (Sé e São Pedro) · 3df528 | Active | €450,000 | €5,625 | 69.0% | 75 | 52 |
| urbanização de Gambelas S / N | Active | €852,500 | €2,842 | 14.6% | 74 | 64 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 107.1% | 78 | 60 |
| Montenegro · 0016d4 | Active | €945,000 | €4,565 | 37.1% | 80 | 63 |
| Median comp | €898,750 | €5,095 | 53.1% | 77 | 62 |
Short-term vacation rental With a fair value of €1,040,931, the property is positioned attractively for short-term vacation rental, offering a significant gap of 28% from current listing prices. Its location in the tourist-centric area of Algarve could drive strong seasonal demand, making it a viable investment choice. Buy-and-hold As the property is currently listed at €749,000, it presents an opportunity for buy-and-hold investors due to its fair value estimation of €1,040,931. The gross yield of 3.5% and good condition rating of 81/100 suggest potential for long-term capital appreciation in a desirable location. Family rental At a listing price of €749,000, this property is a sensible choice for family rental, given its valuation at €1,040,931, reflecting a significant subvaluation of 28%. Its adequate neighborhood rating of 65/100 indicates a stable environment for families, supporting sustained rental demand.
Economic Vulnerability The combined economic and tenant stability score of 65/100 indicates a potential risk of income volatility and difficulties in maintaining occupancy 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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