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, 3-bathroom house of 145 m², energy rating B. Located on rua Veríssimo de Almeida, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The property includes a cozy pellet stove in the living room and a fantastic rooftop terrace, offering excellent solar exposure for outdoor relaxation in Algarve's warm climate.
The valuation. The asking price of €550,000 is significantly above the fair value of €457,326, representing an excess of €92,674 (16.8%) and categorizing the property as overpriced. Buy-to-flip angle. Given its current condition and stylish finishes, this property could be improved and resold at a higher price, targeting buyers in the tourist-driven market. Buy-to-let angle. With an estimated rental income of €1,329/month, the gross yield is 2.9%, suggesting modest returns for long-term rental in this desirable tourist location.
Fair value modelled at €457,326 from the area baseline, adjusted for condition and location. Asking €550,000 sits €92,674 (16.8%) above — overpriced versus fair value.
Asking €550,000 versus the rua Veríssimo de Almeida area baseline of €414,990 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Veríssimo de Almeida
Area baseline €414,990 + condition +€7,477 + location +€34,859 = modelled fair value of €457,326 (€3,154/m²), a €92,674 (16.8%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Veríssimo de Almeida | Subject | €550,000 | €3,793 | — | 75 | 71 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 18.3% | 79 | 60 |
| Faro (Sé e São Pedro) · 4a7e4f | Active | €360,000 | €2,118 | 44.2% | 72 | 65 |
| rua do Trem, 13 | Active | €850,000 | €2,833 | 25.3% | 70 | 70 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 81.7% | 78 | 60 |
| Median comp | €885,000 | €2,966 | 21.8% | 75 | 63 |
Long-term rental The property is overpriced by 16.8%, making it a less attractive option for long-term rental investments given the current yield of 2.9%. Additionally, while the neighbourhood has decent amenities, the home's market value does not align with its potential rental income. Short-term vacation rental Despite Faro's status as a tourist hub, the high listing price compared to fair value presents a significant risk for short-term vacation rentals, limiting potential returns. With the property yielding only 2.9%, it may not generate sufficient revenue to justify the investment. Buy-and-hold The 16.8% gap from fair value indicates that this property is overpriced for a buy-and-hold strategy, which typically requires a solid appreciation potential. Although its coastal location may attract some demand, the current valuation does not support a long-term holding strategy effectively.
Moderate Economic and Tenant Risk The economic stability score of 65/100 alongside a tenant stability score of 65/100 suggests that there may be challenges in maintaining consistent rental income and tenant occupancy, increasing overall investment risk.
