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 apartment of 140 m² on the 3rd floor, built in 2006, energy rating B. Located on rua José Saramago, Montenegro parish, Faro municipality, Faro district. Noteworthy Features: This apartment includes double-glazed windows with mosquito nets for enhanced comfort and a common rooftop with scenic views over the Ria, perfect for relaxation.
The valuation. The asking price of €420,000 is positioned slightly below the fair value of €450,511, resulting in an attractive disparity of €30,511 (6.8%). This property is considered to be fairly priced in the current market. Buy-to-flip angle. A buy-to-flip strategy could be employed by making aesthetic improvements to enhance the apartment's appeal before resale, potentially increasing its market value significantly. Given its high-quality materials and custom cabinetry, a thoughtful renovation should yield strong returns. Buy-to-let angle. A buy-to-let strategy could generate a projected monthly rental income of approximately €1,400, translating to a gross yield of 4%. This rental income strategy could prove lucrative, especially given the area's tourism-driven demand and proximity to the Algarve.
Fair value modelled at €450,511 from 6 comparable sales in the area. Asking €420,000 sits €30,511 (6.8%) below — the upside to fair value.
Asking €420,000 versus the rua José Saramago area baseline of €440,850 (€3,149/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €440,850, adjusted for condition and micro-location, gives a modelled fair value of €450,511 (€3,218/m²), a €30,511 (6.8%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua José Saramago | Subject | €420,000 | €3,000 | — | 75 | 63 |
| urbanização Hortas das Figuras | Active | €499,500 | €2,730 | 9.0% | 75 | 68 |
| travessa da Mota | Active | €530,000 | €2,208 | 26.4% | 75 | 70 |
| rua Corina Freire, 11 | Active | €619,000 | €3,328 | 10.9% | 78 | 63 |
| Faro (Sé e São Pedro) · 0014f6 | Active | €549,000 | €3,760 | 25.3% | 81 | 61 |
| Median comp | €539,500 | €3,029 | 1.0% | 77 | 66 |
Short-term vacation rental The property is positioned in a desirable tourism zone due to its proximity to the Algarve, which may attract short-term rental guests. However, the fair value suggests that the current listing price offers limited upward potential for future rental yields. Buy-and-hold Investing in this property for long-term appreciation might yield moderate results, considering its fair market value and solid but unspectacular yield of 4%. The strong tourism influences can help stabilize returns, but the current price limits significant value appreciation over time. Family rental As a family rental, this property may attract some interest given its size and location; however, the relatively lower neighborhood rating of 63/100 indicates potential challenges in tenant retention and demand. The price reflects a fair assessment, yet families may seek more vibrant amenities that are currently lacking in the area.
Economic Vulnerability The economic stability score of 55 indicates a potential risk of fluctuations in property value and rental income due to an unstable local economy.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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