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, 2-bathroom apartment of 90 m² on the 1st floor, built in 1996, energy rating C. Located on rua dos Malmequeres, 1, Montenegro parish, Faro municipality, Faro district. This apartment features state-of-the-art thermal break aluminum windows, enhancing energy efficiency, and offers aesthetically pleasing plasterboard ceilings with recessed lighting for a modern living experience.
The valuation. The asking price of €380,000 is €28,775 (8.2%) above the fair value of €351,225, indicating that the property is valued fairly but comes at a slight premium. Buy-to-flip angle. The resale strategy focuses on short-term cosmetic updates to capitalize on the appealing features of high-quality materials, aiming to resell for a profit. Buy-to-let angle. The rental income strategy anticipates a gross yield of 3%, generating approximately €950 per month through long-term or short-term rentals, appealing to Algarve's tourist traffic.
Fair value modelled at €351,225 from 6 comparable sales in the area. Asking €380,000 sits €28,775 (8.2%) above — overpriced versus fair value.
Asking €380,000 versus the rua dos Malmequeres, 1 area baseline of €334,449 (€3,716/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €334,449, adjusted for condition and micro-location, gives a modelled fair value of €351,225 (€3,902/m²), a €28,775 (8.2%) gap versus the €380,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Malmequeres, 1 | Subject | €380,000 | €4,222 | — | 70 | 68 |
| Faro (Sé e São Pedro) · 25f545 | Active | €285,000 | €4,071 | 3.6% | 70 | 64 |
| Faro (Sé e São Pedro) · 3a71ee | Active | €335,000 | €3,454 | 18.2% | 72 | 60 |
| rua Engenheiro José Campos Coroa | Active | €370,000 | €3,895 | 7.8% | 78 | 66 |
| Faro (Sé e São Pedro) · 8317fd | Active | €345,000 | €4,012 | 5.0% | 72 | 72 |
| Median comp | €340,000 | €3,954 | 6.4% | 72 | 65 |
Long-term rental The 2-bed apartment in Montenegro presents a modest gross yield of 3%, reflecting a stable but not exceptional investment opportunity within the region. Given its fair valuation at €380,000 against a fair value of €351,225, the property is not positioned as an attractive long-term rental investment. Short-term vacation rental While the Algarve's popularity with tourists could potentially support short-term rental strategies, the apartment's current pricing offers limited upside, with a fair value indicating a gap of only 8.2%. Therefore, this property does not present an optimal opportunity in the short-term vacation rental market. Buy-and-hold Holding onto this property for future appreciation may not yield significant returns, as it is currently priced fairly at €380,000 despite its fair value being slightly lower. Given its 75/100 condition and 68/100 neighbourhood score, the property may fall short of meeting the expectations typically associated with successful buy-and-hold strategies.
Economic Dependence Risk The property’s economic stability score of 65/100 suggests vulnerability to economic downturns, which could lead to decreased demand or rental income instability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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