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, 1-bathroom apartment of 70 m², energy rating E. Located Montenegro parish, Faro municipality, Faro district. This property boasts breathtaking panoramic views of the Ria Formosa and the Atlantic Ocean from its elevated position, enhancing both its aesthetic appeal and natural light throughout the space.
The valuation. The asking price of €750,000 sits significantly above the fair value of €286,836, representing a staggering €463,164 premium (161.5%). Thus, this property is clearly overpriced, making it a poor investment choice in today's market.
Fair value modelled at €286,836 from 6 comparable sales in the area. Asking €750,000 sits €463,164 (161.5%) above — overpriced versus fair value.
Asking €750,000 versus the Montenegro, Faro, Faro area baseline of €220,519 (€3,150/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 €220,519, adjusted for condition and micro-location, gives a modelled fair value of €286,836 (€4,098/m²), a €463,164 (161.5%) gap versus the €750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 8312bd | Subject | €750,000 | €10,714 | — | 78 | 65 |
| Almancil · 653018 | Active | €1,295,000 | €11,991 | 11.9% | 80 | 72 |
| Montenegro · 6a913e | Active | €449,000 | €3,508 | 67.3% | 75 | 65 |
| rua José Saramago | Active | €420,000 | €3,000 | 72.0% | 75 | 63 |
| Montenegro · 3d98bf | Active | €749,000 | €3,329 | 68.9% | 77 | 65 |
| Median comp | €599,000 | €3,419 | 68.1% | 76 | 65 |
Short-term vacation rental The 2-bed apartment in Montenegro is not a viable option for short-term vacation rentals due to its overpriced status with a valuation gap of 161.5%, severely limiting potential profitability. Furthermore, a gross yield of 0% indicates that the property will not generate any immediate cash flow, undermining the appeal to vacation renters. Buy-and-hold Investing in this property as a buy-and-hold asset is disadvantageous, given its listing price of €750,000 compared to the fair value of €286,836, which signifies a substantial risk of depreciation in value. The current condition score of 81/100 may suggest reasonable upkeep, but it does not justify the excessive price in a market where long-term appreciation is dubious. Long-term rental The long-term rental strategy appears unfeasible for this apartment, as the price of €750,000 is significantly above the fair value, limiting potential rental yield and tenant demand. With a neighbourhood rating of 65/100, potential renters may find better options elsewhere, making this investment less attractive in the long run.
Economic Vulnerability The property's economic stability score of 60/100 indicates potential market fluctuations that could negatively 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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