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, 3-bathroom house of 269 m², built in 1990, energy rating E. Located on rua das Margaridas, 3, Montenegro parish, Faro municipality, Faro district. Noteworthy Features: The property includes a covered terrace that seamlessly connects the indoor living spaces to the outdoor garden and pool area, creating an ideal setting for entertaining. Outdoor Conditions: The outdoor areas, while charming, require landscaping and maintenance to enhance their appeal and usability.
The valuation. The asking price of €580,000 is significantly below the fair value of €728,161, yielding a difference of €148,161 (20.3%). This property is underpriced, presenting a compelling opportunity for investment.
Fair value modelled at €728,161 from 6 comparable sales in the area. Asking €580,000 sits €148,161 (20.3%) below — the upside to fair value.
Asking €580,000 versus the rua das Margaridas, 3 area baseline of €760,849 (€2,828/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 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 €760,849, adjusted for condition and micro-location, gives a modelled fair value of €728,161 (€2,707/m²), a €148,161 (20.3%) gap versus the €580,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Margaridas, 3 | Subject | €580,000 | €2,156 | — | 65 | 63 |
| estrada nacional 125. | Active | €570,000 | €2,727 | 26.5% | 65 | 72 |
| Montenegro · 8750e2 | Active | €955,000 | €2,553 | 18.4% | 70 | 60 |
| Montenegro · 3df26b | Active | €720,000 | €2,687 | 24.6% | 55 | 70 |
| Montenegro · 3d98bf | Active | €749,000 | €3,329 | 54.4% | 77 | 65 |
| Median comp | €734,500 | €2,707 | 25.5% | 68 | 68 |
Short-term vacation rental This property, with a 20.3% gap to fair value at €728,161, presents a strong opportunity for short-term vacation rental in the tourist-friendly Algarve region. The 4.4% gross yield indicates promising rental income potential, especially given the area's emphasis on tourism. Long-term rental Given its fair market value of €728,161 and the 20.3% gap, this property offers a solid investment for long-term rental, supported by a decent condition rating of 61/100. The moderate neighborhood score of 63/100 suggests a stable rental demand within a tourist-oriented area. Buy-and-hold With a fair value of €728,161 revealing a 20.3% gap, this property is an attractive buy-and-hold investment likely to appreciate over time in the growing tourism market of Faro. Its current gross yield of 4.4% combined with solid neighborhood dynamics positions it well for future returns.
Economic and Tenant Stability Risk The combined economic and tenant stability scores of 60/100 indicate a moderate risk of fluctuations in rental income and potential tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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