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, 2-bathroom house of 300 m². Located on rua do Trem, 13, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property features a captivating rooftop terrace with unobstructed views of the Cathedral and Ria Formosa, enhancing its appeal in the heart of Faro.
The valuation. The asking price of €850,000 is below the fair value of €894,476, sitting at a discount of €44,476 (5.2%). This property can be considered underpriced based on its market value. Buy-to-flip angle. With a strategic renovation, the resale strategy targets a quick flip to capitalize on the undervaluation. This approach could yield attractive returns within a short timeframe due to the favorable local market dynamics. Buy-to-let angle. The property is positioned for significant rental income, generating an estimated €3,188 per month, resulting in a gross yield of 4.5%. This aligns well with the demand for short-term vacation rentals in the area, ensuring a stable cash flow.
Fair value modelled at €894,476 from the area baseline, adjusted for condition and location. Asking €850,000 sits €44,476 (5.2%) below — the upside to fair value.
Asking €850,000 versus the rua do Trem, 13 area baseline of €858,600 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 65 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 80 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua do Trem, 13
Area baseline €858,600 + condition -€32,813 + location +€68,688 = modelled fair value of €894,476 (€2,982/m²), a €44,476 (5.2%) gap versus the €850,000 asking price.
Short-term vacation rental The property presents a compelling opportunity for a short-term vacation rental, especially given the 4.5% gross yield and proximity to tourism hotspots. With a fair value of €894,476, the listing price of €850,000 suggests potential for strong cash flow and occupancy rates in a tourism-driven market. Buy-and-hold As a buy-and-hold investment, this property offers a strong possibility for appreciation, given its location in Faro, where tourism boosts demand for housing. The 5.2% gap against fair value indicates that it is well-positioned for long-term capital growth while providing a reasonable yield. Family rental This property is suitable for family rentals due to its spacious design and favorable neighborhood scoring. The stable demand from families in areas influenced by tourism allows for consistent rental income, further complemented by the rental yield of 4.5%.
Economic Vulnerability The property has a moderate economic stability score of 65/100, indicating potential fluctuations in market demand that could impact rental income.
