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, 2-bathroom penthouse of 229 m² on the 3rd floor, built in 2025, energy rating A. Located on rua 25 de Abril, Montenegro parish, Faro municipality, Faro district. Noteworthy Features: The penthouse boasts a spacious 91m² terrace perfect for outdoor dining, alongside a separate 68m² rooftop terrace ideal for a jacuzzi and barbecue setup.
The valuation. The asking price of €530,000 sits €209,789 (28.4%) below the fair value of €739,789, indicating the property is underpriced relative to its worth.
Fair value modelled at €739,789 from 6 comparable sales in the area. Asking €530,000 sits €209,789 (28.4%) below — the upside to fair value.
Asking €530,000 versus the rua 25 de Abril area baseline of €684,591 (€2,989/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 €684,591, adjusted for condition and micro-location, gives a modelled fair value of €739,789 (€3,231/m²), a €209,789 (28.4%) gap versus the €530,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua 25 de Abril | Subject | €530,000 | €2,314 | — | 90 | 64 |
| rua José Saramago | Active | €420,000 | €3,000 | 29.6% | 75 | 63 |
| rua António Carrusca Rodrigues, 6 | Active | €750,000 | €3,440 | 48.6% | 82 | 60 |
| Faro (Sé e São Pedro) · 65303a | Active | €250,000 | €3,247 | 40.3% | 72 | 68 |
| rua António Carrusca Rodrigues, 3 | Active | €600,000 | €1,935 | 16.4% | — | 60 |
| Median comp | €510,000 | €3,124 | 35.0% | 75 | 62 |
Short-term vacation rental The property’s prime location in Montenegro, Faro positions it well for a lucrative short-term vacation rental market, further supported by its size and price, which is 28.4% below fair value. Given its high condition rating of 84/100, it can attract tourists looking for upscale accommodations in a desirable area. Buy-and-hold Investing in this 1-bed penthouse offers the potential for significant appreciation as the market recognizes its value, currently assessed at €530,000, 28.4% below fair value. As demand for properties in tourist zones remains strong, long-term ownership could yield favorable returns in the coming years. Family rental While the property is attractive and underpriced, family rental viability may be limited due to the neighborhood's lower score of 64/100 regarding amenities and access to schools and employment. Nonetheless, its spacious layout could appeal to families seeking short-term rentals during peak tourist seasons. Not ideal for student housing The property's characteristics and location make it unsuitable for student housing, as employment and educational access are primarily geared towards tourism rather than long-term residency. Additionally, the lack of necessary amenities for students further detracts from its suitability for this rental strategy. Not ideal for luxury market The penthouse, while well-conditioned, does not align with luxury market expectations, given the neighborhood's score of 64/100 and its focus on temporary tourist habitation. Its fair market value position indicates that it caters more to budget-conscious travelers than affluent buyers looking for high-end properties.
Economic Volatility Risk A score of 55/100 in economic stability indicates a potential for unexpected changes in the market that could impact property values and rental income stability.
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