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, 1-bathroom house of 180 m², built in 1951, energy rating F. Located on rua do Doutor Samora Gil S / N, Monchique parish, Monchique municipality, Faro district. Noteworthy Features: This property includes a unique ground floor commercial space with potential for various business endeavors, paired with a residential area that allows for personalized renovations.
The valuation. The asking price of €242,000 is significantly below the fair value of €356,669, indicating the property is underpriced by €114,669 (32.2%). This presents a compelling opportunity for investors seeking equity. Buy-to-flip angle. The strategy involves a value-add renovation utilizing selective improvements to elevate property appeal, potentially allowing for a resale price that far exceeds the implementation costs. Quick turnover can capitalize on the Algarve's tourism-driven market. Buy-to-let angle. Though the gross yield is currently 0%, there is potential for generating rental income through short-term vacation rentals leveraging the property's coastal proximity. With strategic renovation, rental appeal may significantly increase, optimizing cash flow.
Fair value modelled at €356,669 from 6 comparable sales in the area. Asking €242,000 sits €114,669 (32.2%) below — the upside to fair value.
Asking €242,000 versus the rua do Doutor Samora Gil S / N area baseline of €357,736 (€1,987/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 40/100 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 €357,736, adjusted for condition and micro-location, gives a modelled fair value of €356,669 (€1,981/m²), a €114,669 (32.2%) gap versus the €242,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Doutor Samora Gil S / N | Subject | €242,000 | €1,344 | — | 33 | 60 |
| Monchique · f46a03 | Active | €300,000 | €718 | 46.6% | — | 61 |
| urbanização Carreirinha das Moças | Active | €270,000 | €2,727 | 102.9% | 58 | 50 |
| Monchique · 82c618 | Active | €1,250,000 | €2,588 | 92.5% | — | 54 |
| Monchique · 8ee6b0 | Active | €110,000 | €1,375 | 2.3% | — | 61 |
| Median comp | €285,000 | €1,982 | 47.4% | 58 | 58 |
Short-term vacation rental The property presents a promising opportunity for short-term vacation rentals, leveraging its moderate tourism impact due to coastal proximity. With a fair value gap of 32.2%, the potential for profit from vacation rental income is attractive despite the current yield being 0%. Value-add renovation Investing in value-add renovations could significantly enhance the property’s appeal and market value, given its current condition rating of 40/100. The considerable gap to fair value suggests that targeted improvements can yield a favorable return on investment in the Monchique area. Not ideal for This property is not suited for student housing or the luxury market, given its condition and neighborhood ratings which stand at 40/100 and 60/100, respectively.
[Tenant turnover risk] With a Tenant stability score of 60/100, there is a moderate risk of higher tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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