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 house of 226 m², built in 1994. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: The property includes a solar-powered heating system and landscaped outdoor space with fruit trees and a barbecue area, enhancing its leisure and sustainability appeal.
The valuation. The asking price of €797,000 is substantially below the fair value of €1,104,411, presenting an opportunity for a substantial equity gain of €307,411 (27.8%). Verdict: underpriced. Buy-to-flip angle. The property’s solid mid-range quality and favorable location near Algarve’s tourist region make it suitable for a buy-to-flip strategy, aiming to resell at a profit following cosmetic enhancements. Buy-to-let angle. With an estimated rental income of €2,059/month, the gross yield of 3.1% positions this property as a viable buy-to-let investment, particularly attractive for long-term tenants or short-term vacation rentals.
Fair value modelled at €1,104,411 from 6 comparable sales in the area. Asking €797,000 sits €307,411 (27.8%) below — the upside to fair value.
Asking €797,000 versus the Montenegro, Faro, Faro area baseline of €1,104,123 (€4,886/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 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 €1,104,123, adjusted for condition and micro-location, gives a modelled fair value of €1,104,411 (€4,887/m²), a €307,411 (27.8%) gap versus the €797,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 2ce0e5 | Subject | €797,000 | €3,527 | — | 68 | 63 |
| rua Julio Dinis | Active | €750,000 | €5,208 | 47.7% | 72 | 61 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 95.5% | 78 | 60 |
| praceta Santos Stockler, 20 | Active | €865,000 | €3,289 | 6.7% | 70 | 57 |
| Montenegro · 0016d4 | Active | €945,000 | €4,565 | 29.5% | 80 | 63 |
| Median comp | €905,000 | €4,887 | 38.6% | 75 | 61 |
Long-term rental The 3-bed house in Montenegro, Faro, presents a stable long-term rental opportunity due to its proximity to the Algarve tourist region, which has a robust economic activity driven by tourism. Despite the modest gross yield of 3.1%, the property is currently significantly undervalued at €797,000 compared to a fair value of €1,104,411, indicating long-term potential growth. Short-term vacation rental Given the strategic location near tourist attractions in the Algarve, this property could capitalize on the increasing demand for short-term vacation rentals, especially as tourism continues to thrive in the region. The 27.8% gap between the listing price and fair value suggests solid investment potential, despite a gross yield of 3.1%. Buy-and-hold Investing in this 3-bed house allows for a buy-and-hold approach that aligns with the ongoing growth in the Algarve market, supported by a fair value notably higher than the current listing price. The property’s condition rating of 72/100 shows it is in good shape for long-term retention, making it a sound addition to a diversified portfolio.
Economic-tenant stability risk The property has both economic and tenant stability scores of 60/100, indicating a moderate risk due to potential fluctuations in tenant retention and local economic conditions impacting rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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