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.
4-bedroom, 3-bathroom house of 132 m², energy rating B. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: The property includes a large suite on the ground floor with a custom walk-in closet, enhancing convenience and storage for residents and guests.
The valuation. The asking price of €820,000 sits €188,696 (29.9%) above the fair value of €631,304, rendering the property overpriced. Buy-to-flip angle. The potential for resale can be leveraged by implementing strategic renovations to appeal to high-end buyers following market trends. Buy-to-let angle. The estimated gross yield of 2.5%, translating to around €1,708/month, positions this property as a moderate long-term rental investment in a tourist-influenced area.
Fair value modelled at €631,304 from 6 comparable sales in the area. Asking €820,000 sits €188,696 (29.9%) above — overpriced versus fair value.
Asking €820,000 versus the Montenegro, Faro, Faro area baseline of €574,349 (€4,351/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €574,349, adjusted for condition and micro-location, gives a modelled fair value of €631,304 (€4,783/m²), a €188,696 (29.9%) gap versus the €820,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 51cbaf | Subject | €820,000 | €6,212 | — | 88 | 73 |
| Montenegro · 51b494 | Active | €787,500 | €4,351 | 30.0% | 68 | 52 |
| estrada do Passeio Ribeirinho | Active | €530,000 | €5,699 | 8.3% | 80 | 62 |
| Montenegro · 2cde93 | Active | €797,000 | €5,535 | 10.9% | 62 | 70 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 50.1% | 79 | 60 |
| Median comp | €792,250 | €4,943 | 20.4% | 74 | 61 |
Short-term vacation rental The property is overpriced at €820,000 compared to its fair value of €631,304, presenting a significant gap of 29.9%. With a gross yield of only 2.5%, it struggles to meet the profit expectations typically sought in the vacation rental market. Long-term rental While the condition and neighborhood ratings are acceptable at 84/100 and 73/100 respectively, the property’s pricing at €820,000 is still excessive given its fair valuation of €631,304. The long-term rental yield of 2.5% is uncompetitive, indicating this investment is not aligned with market return potentials. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its overpriced listing of €820,000 compared to a fair value of €631,304, resulting in a 29.9% overvaluation. The low yield of 2.5% suggests limited appreciation potential, making it a less attractive option for long-term investors.
Economic Vulnerability The economic stability score of 60/100 indicates potential fluctuations in the local economy that could affect property value or tenant demand.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Sign in to buy the report or use a credit
