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. Located Monchique parish, Monchique municipality, Faro district. This villa features a seamless indoor-outdoor transition with expansive terraces overlooking the coast, creating a perfect environment for Mediterranean-style living and entertaining.
The valuation. The asking price of €885,000 sits significantly below fair value at €1,210,268, indicating an undervaluation of €325,268 (26.9%). This presents an appealing opportunity for investors looking for value.
Fair value modelled at €1,210,268 from 6 comparable sales in the area. Asking €885,000 sits €325,268 (26.9%) below — the upside to fair value.
Asking €885,000 versus the Monchique, Monchique, Faro area baseline of €1,071,597 (€4,106/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €1,071,597, adjusted for condition and micro-location, gives a modelled fair value of €1,210,268 (€4,637/m²), a €325,268 (26.9%) gap versus the €885,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monchique · c49899 | Subject | €885,000 | €3,391 | — | 80 | 64 |
| jardim e Arvores de Fruta | Active | €565,000 | €4,449 | 31.2% | 75 | 70 |
| Monchique · 99f144 | Active | €1,795,000 | €4,825 | 42.3% | 85 | 56 |
| via Spy Manor Productions | Active | €1,850,000 | €5,457 | 60.9% | 85 | 75 |
| Silves · 4a7f1c | Active | €785,000 | €2,996 | 11.6% | 80 | 64 |
| Median comp | €1,290,000 | €4,637 | 36.8% | 83 | 67 |
Short-term vacation rental The 3-bed villa in Monchique presents a compelling opportunity for short-term vacation rental given its fair value of €1,210,268 compared to the listing price of €885,000, indicating a significant advantage of 26.9%. With the region's dependency on tourism, this property could cater to the growing demand for vacation accommodations, generating attractive returns in the short rental market. Long-term rental Though the gross yield is currently at 0%, the substantial disparity between the asking price and fair value suggests that long-term rental potential remains strong in Monchique. The area's tourism appeal could facilitate stable rental demand, making it a strategic choice for long-term investment despite the current yield. Buy-and-hold As a buy-and-hold investment, the property stands out due to its fair value of €1,210,268 against the listing price of €885,000, offering a potential appreciation of 26.9% over time. Investing in this villa positions the buyer well within the thriving Algarve region, which is bolstered by consistent tourist visitation and economic activity, potentially leading to capital gains in the future.
Economic and Tenant Instability Risk: With both economic stability and tenant stability scores at 60/100, there is a heightened risk of fluctuating income and potential vacancies due to market volatility and tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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