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, 4-bathroom villa of 261 m², built in 2005, energy rating B. Located Monchique parish, Monchique municipality, Faro district. Noteworthy Feature: The villa includes a spacious library or office area, providing an ideal workspace that seamlessly integrates with the home's high-quality living environment and fantastic views.
The valuation. The asking price of €945,000 aligns closely with the fair value of €932,143, indicating a mere €12,857 difference (1.4%). This suggests that the property is fairly valued in the current market.
Fair value modelled at €932,143 from 6 comparable sales in the area. Asking €945,000 sits €12,857 (1.4%) above — overpriced versus fair value.
Asking €945,000 versus the Monchique, Monchique, Faro area baseline of €803,349 (€3,078/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €803,349, adjusted for condition and micro-location, gives a modelled fair value of €932,143 (€3,571/m²), a €12,857 (1.4%) gap versus the €945,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monchique · 8315b6 | Subject | €945,000 | €3,621 | — | 75 | 62 |
| Monchique · 99f144 | Active | €1,795,000 | €4,825 | 33.3% | 85 | 56 |
| Monchique · 6fb8fb | Active | €1,990,000 | €6,525 | 80.2% | 88 | 68 |
| jardim Exuberante em Caldas de Monchique | Active | €849,000 | €1,904 | 47.4% | 80 | 64 |
| jardim Exuberante em Caldas de Monchique | Active | €849,000 | €1,904 | 47.4% | 75 | 71 |
| Median comp | €1,322,000 | €3,365 | 7.1% | 83 | 66 |
Short-term vacation rental The 3-bed villa in Monchique, while positioned in a tourist-friendly Algarve region, yields a gross return of 0%, which can deter short-term rental profitability. Given its fair valuation of €945,000, this property may not deliver the expected financial performance for vacation renters seeking better returns. Buy-and-hold With a fair value of €932,143, the 3-bed villa represents a stable asset that aligns with long-term market appreciation trends in Monchique. However, its low yield and high listing price may limit capital growth opportunities for investors focused on cash flow and returns. Long-term rental This property’s current valuation at €945,000, despite falling within fair parameters, presents challenges for long-term rental investors due to a yield of 0% and moderate neighborhood ratings. Investors should be cautious, as even with good condition metrics, the financial viability for long-term rental strategies remains questionable under the existing price conditions.
Economic Volatility Risk The property has a below-average economic stability score of 55/100, indicating potential fluctuations in the local economy that could 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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