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.
1-bedroom, 0-bathroom country_house of 128 m². Located Monchique parish, Monchique municipality, Faro district. This property is situated on a 1.7 ha small farm, featuring indigenous cork oaks and strawberry trees, presenting potential for a unique eco-friendly restoration project.
The valuation. The asking price of €145,000 is significantly below the fair value of €250,807, presenting a discount of €105,807 (42.2%). This property is therefore considered underpriced.
Fair value modelled at €250,807 from 6 comparable sales in the area. Asking €145,000 sits €105,807 (42.2%) below — the upside to fair value.
Asking €145,000 versus the Monchique, Monchique, Faro area baseline of €287,390 (€2,245/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 13/100 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 €287,390, adjusted for condition and micro-location, gives a modelled fair value of €250,807 (€1,959/m²), a €105,807 (42.2%) gap versus the €145,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monchique · e3abc8 | Subject | €145,000 | €1,133 | — | — | 53 |
| Monchique · 0dcc34 | Active | €150,000 | €1,339 | 18.2% | — | 63 |
| Monchique · 800148 | Active | €290,000 | €2,544 | 124.6% | — | 63 |
| Monchique · 622b0b | Active | €190,000 | €3,016 | 166.2% | 24 | 63 |
| Monchique · 8ee6b0 | Active | €110,000 | €1,375 | 21.4% | — | 61 |
| Median comp | €170,000 | €1,960 | 73.0% | 24 | 63 |
Short-term vacation rental The property in Monchique is subvalorizada by 42.2%, making it an attractive option for short-term vacation rentals in proximity to Algarve tourist areas. However, with a gross yield of 0% and a low condition score, the potential for immediate profitability may be limited. Buy-and-hold Investing in this property as a buy-and-hold strategy is appealing due to its significant gap to fair value, suggesting potential appreciation over time. Nevertheless, the low condition rating indicates that substantial renovations may be necessary to unlock its full value as the area develops. Family rental Despite being subvalorizada, this one-bedroom house in Monchique might not be ideal for family rentals given its small size and low condition score. The neighbourhood's moderate tenant quality and amenities may further limit its attractiveness for families seeking longer-term housing solutions.
Economic and Tenant Instability Risk With an economic stability score of 45/100 and tenant stability score of 50/100, there is a heightened risk of fluctuating rental income and potential vacancy issues due to the low economic conditions and moderate tenant retention potential.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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