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.
5-bedroom, 3-bathroom apartment of 201 m² on the 4th floor, energy rating C. Located on avenida 5 de Outubro, 40, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment includes three spacious balconies, with the largest offering sweeping views over the Ria Formosa and a prime location in Faro's historical center. Conditions to Note: The property requires moderate updates, particularly in the kitchen and bathrooms, as they exhibit some signs of wear.
The valuation. The asking price of €530,000 is below the fair value of €557,015, indicating an undervalued opportunity by €27,015 (5.1%). This pricing reflects favorable conditions for potential investors.
Fair value modelled at €557,015 from the area baseline, adjusted for condition and location. Asking €530,000 sits €27,015 (5.1%) below — the upside to fair value.
Asking €530,000 versus the avenida 5 de Outubro, 40 area baseline of €575,262 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 58/100 (Condition 55 · Materials 60 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
avenida 5 de Outubro, 40
Area baseline €575,262 + condition -€52,762 + location +€34,516 = modelled fair value of €557,015 (€2,771/m²), a €27,015 (5.1%) gap versus the €530,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro, 40 | Subject | €530,000 | €2,637 | — | 55 | 65 |
| avenida Doctor Gordinho Moreira, 6 | Active | €367,000 | €2,719 | 3.1% | 70 | 62 |
| largo do Sol Posto | Active | €650,000 | €3,155 | 19.7% | 72 | 63 |
| travessa da Mota | Active | €530,000 | €2,208 | 16.2% | 75 | 70 |
| Faro (Sé e São Pedro) · ba3da2 | Active | €370,000 | €2,342 | 11.2% | 78 | 50 |
| Median comp | €450,000 | €2,531 | 4.0% | 74 | 63 |
Short-term vacation rental This property is well-situated in the tourist-heavy Algarve region, making it an attractive option for short-term vacation rentals, capitalizing on seasonal tourism influxes. With a yield of 3.9% gross and a fair value just 5.1% higher than the listing price, the investment presents a valuable opportunity in a thriving market. Long-term rental The property in Faro is positioned in a neighbourhood that offers stable housing interest, which is essential for long-term rental success. Additionally, with a competitive gross yield of 3.9% and a fair value only slightly above the listing price, it provides a solid foundation for generating consistent rental income. Buy-and-hold Investing in this 5-bed apartment can be a strategic buy-and-hold opportunity given the 5.1% gap to fair value and the overall stability of the Algarve housing market. The advantageous yield of 3.9% gross further supports the thesis that this property will appreciate over time, thereby enhancing long-term investment potential.
Economic Vulnerability With an economic stability score of 55/100, the property may face challenges during economic downturns, potentially leading to higher vacancy rates and reduced rental income.
