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.
4-bedroom, 4-bathroom house of 454 m². Located Montenegro parish, Faro municipality, Faro district. This property features a versatile basement space suitable for a gym or cinema, alongside a meticulously designed outdoor kitchen equipped with a barbecue, perfect for entertaining.
The valuation. The property is listed at €1,270,000, which is €130,716 (9.3%) below its fair value of €1,400,716. This indicates that the asking price is aligned with the current market conditions, representing fair valuation.
Fair value modelled at €1,400,716 from 6 comparable sales in the area. Asking €1,270,000 sits €130,716 (9.3%) below — the upside to fair value.
Asking €1,270,000 versus the Montenegro, Faro, Faro area baseline of €1,198,087 (€2,639/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 91/100 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 €1,198,087, adjusted for condition and micro-location, gives a modelled fair value of €1,400,716 (€3,085/m²), a €130,716 (9.3%) gap versus the €1,270,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 8318bb | Subject | €1,270,000 | €2,797 | — | 92 | 58 |
| Faro (Sé e São Pedro) · 3d984b | Active | €595,000 | €3,914 | 39.9% | 80 | 67 |
| rua Doutor José Domingos Garcia Domingues | Active | €375,000 | €2,641 | 5.6% | 70 | 64 |
| Montenegro · 8750e2 | Active | €955,000 | €2,553 | 8.7% | 70 | 60 |
| Montenegro · 3d98bf | Active | €749,000 | €3,329 | 19.0% | 77 | 65 |
| Median comp | €672,000 | €2,985 | 6.7% | 74 | 65 |
Short-term vacation rental This property presents a fair opportunity in the short-term vacation rental market, with a competitive gross yield of 6.5% that positions it well for generating attractive returns. Its location in rural Algarve, complemented by a well-maintained condition rating of 91/100, enhances its appeal to vacationers seeking a unique retreat. Buy-and-hold Investing in this property for a buy-and-hold strategy could yield stable returns due to its fair valuation and potential appreciation in a desirable region. Despite a neighborhood score of 58/100, the solid condition of the house supports its long-term investment potential, making it a reasonable choice for future growth. Not ideal for student housing Given the neighborhood rating and the property characteristics, this 4-bed house is not well-suited for student housing, which typically demands proximity to urban amenities and educational institutions. The rural setting and higher price point limit its appeal to the student demographic. Not ideal for luxury market This property does not align with luxury market expectations, particularly given its neighborhood score of 58/100, which suggests limited appeal in high-end demographics. The pricing further emphasizes its positioning outside of the luxury segment, making it less attractive for that market audience.
Economic Vulnerability With an economic stability score of 40/100, there is a significant risk that adverse economic conditions may lead to decreased demand for rental properties in the area, affecting occupancy rates and rental income.
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