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.
5-bedroom, 5-bathroom villa of 320 m², built in 2019, energy rating A. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: The property features a sophisticated home automation system, enhancing security and efficiency, and a unique terrace that offers panoramic views of the private saltwater pool.
The valuation. The asking price of €1,600,000 sits marginally above the fair value estimate of €1,576,575, reflecting a difference of €23,425 (1.5%). This positions the property as fairly priced within the current market. Buy-to-flip angle. The resale strategy focuses on leveraging the villa's high-quality finishes and prime location, targeting high-end buyers seeking luxury vacation homes. Enhancements might yield a competitive resale price. Buy-to-let angle. Aiming for a long-term rental strategy, the estimated gross yield is 1.7%, translating to approximately €2,267 monthly. The villa's appeal is bolstered by proximity to Faro, attracting stable tenants.
Fair value modelled at €1,576,575 from 6 comparable sales in the area. Asking €1,600,000 sits €23,425 (1.5%) above — overpriced versus fair value.
Asking €1,600,000 versus the Montenegro, Faro, Faro area baseline of €1,419,983 (€4,437/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 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 €1,419,983, adjusted for condition and micro-location, gives a modelled fair value of €1,576,575 (€4,927/m²), a €23,425 (1.5%) gap versus the €1,600,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · e554b2 | Subject | €1,600,000 | €5,000 | — | 85 | 64 |
| rua Duarte Lopes, 28 | Active | €2,500,000 | €5,708 | 14.2% | 85 | 63 |
| Montenegro · 4d4683 | Active | €3,300,000 | €6,055 | 21.1% | 88 | 70 |
| Montenegro · e83564 | Active | €995,000 | €4,146 | 17.1% | 72 | 72 |
| Montenegro · 4201c3 | Active | €1,500,000 | €5,882 | 17.6% | 75 | 70 |
| Median comp | €2,000,000 | €5,795 | 15.9% | 80 | 70 |
Short-term vacation rental The villa's proximity to Faro and its strong tourism influence provides a solid foundation for short-term vacation rentals, suggesting stable occupancy rates. However, with a gross yield of 1.7%, the return on investment may not be as attractive given the property's fair valuation compared to its listing price. Long-term rental While the villa is in a decent condition with a score of 87/100, the neighbourhood's rating of 64/100 indicates potential challenges in tenant quality and demand for long-term leases. At a fair value and with a low yield of 1.7%, renting this property long-term may not optimally leverage its location benefits. Buy-and-hold With an approximately 1.5% gap between listing and fair value, the villa represents a reasonable buy-and-hold investment without significant immediate gains. However, given its low yield and fair pricing, long-term appreciation may not sufficiently compensate for the holding costs involved in this strategy.
Potential Tenant Turnover The economic and tenant stability scores of 60/100 indicate a moderate risk of tenant turnover, which could lead to decreased rental income over time due to potential vacancy periods or the need to lower rents to attract new tenants.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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