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.
2-bedroom, 2-bathroom apartment of 171 m², built in 2001, energy rating C. Located on rua do Farol, Quarteira parish, Loulé municipality, Faro district. This apartment features three balconies, maximizing outdoor living space, and includes an accessible parking space in a garage, enhancing convenience for residents.
The valuation. The asking price of €350,000 is significantly below the fair value of €857,455, creating an opportunity with a variance of €507,455 (145.0%). This property is clearly underpriced in the current market.
Fair value modelled at €857,455 from the area baseline, adjusted for condition and location. Asking €350,000 sits €507,455 (145.0%) below — the upside to fair value.
Asking €350,000 versus the rua do Farol area baseline of €801,306 (€4,686/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 68 · Materials 73 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 75 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Farol
Area baseline €801,306 + condition -€11,222 + location +€73,185 = modelled fair value of €857,455 (€5,014/m²), a €507,455 (145.0%) gap versus the €350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Farol | Subject | €350,000 | €2,047 | — | 68 | 73 |
| Quarteira · 6fbbdf | Active | €490,000 | €3,161 | 54.5% | 74 | 65 |
| avenida de Ceuta In Quarteira | Active | €320,000 | €3,107 | 51.8% | 72 | 66 |
| avenida Francisco Sá Carneiro | Active | €280,000 | €3,256 | 59.1% | 60 | 70 |
| Quarteira · 001a1f | Active | €339,000 | €3,324 | 62.4% | 75 | 70 |
| Median comp | €329,500 | €3,209 | 56.8% | 73 | 68 |
Long-term rental The property offers a compelling opportunity for long-term rental investors, with a gross yield of 7.1% indicative of solid tenant demand in Quarteira. Given the fair value at €857,455, purchasing this apartment at €350,000 presents a significant upside potential and aligns with the ongoing demand for housing in the Algarve region. Short-term vacation rental With the Algarve's reputation as a popular tourist destination, this 2-bed apartment is well-positioned for short-term vacation rentals, taking advantage of peak tourist seasons. The considerable gap between the listing price and fair value enhances the attractiveness of this investment, providing an opportunity for strong rental income. Buy-and-hold This asset stands out as a buy-and-hold investment due to its favorable location and considerable undervaluation compared to its fair market price. Maintaining ownership of the property in this growing tourist market not only ensures rental income but also positions the investor to benefit from future property appreciation. Not ideal for: The property's features and location are not suitable for student housing, luxury market placements, or value-add renovation strategies.
Economic and tenant vulnerability With both economic and tenant stability scores at 70/100, there is a risk of fluctuations in rental income and occupancy, potentially leading to decreased returns during economic downturns or tenant transitions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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