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, 1-bathroom apartment of 130 m². Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. The apartment offers unobstructed views of the Ria Formosa, perfect for enjoying stunning sunsets, and includes private parking in a highly sought-after location.
The valuation. The asking price of €540,000 is significantly above the fair value of €405,829, resulting in an overpricing of €134,171 (24.8%). This property is not considered a good deal based on current valuation metrics.
Fair value modelled at €405,829 from the area baseline, adjusted for condition and location. Asking €540,000 sits €134,171 (24.8%) above — overpriced versus fair value.
Asking €540,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €372,060 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €372,060 + condition +€14,422 + location +€19,347 = modelled fair value of €405,829 (€3,122/m²), a €134,171 (24.8%) gap versus the €540,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 25f7bb | Subject | €540,000 | €4,154 | — | 80 | 63 |
| rua Doutor Arnaldo Cardoso Vilhena, 31 | Active | €299,000 | €4,041 | 2.7% | 82 | 58 |
| rua Ataide de Oliveira | Active | €408,000 | €3,264 | 21.4% | 75 | 62 |
| avenida 5 de Outubro | Active | €280,000 | €5,600 | 34.8% | 75 | 73 |
| Faro (Sé e São Pedro) · 25f545 | Active | €285,000 | €4,071 | 2.0% | 70 | 64 |
| Median comp | €292,000 | €4,056 | 2.4% | 75 | 63 |
Short-term vacation rental This 1-bed apartment in Faro is overpriced at €540,000 compared to its fair value of €405,829, presenting a significant valuation gap of 24.8%. Given its low yield of 2.4%, potential returns from short-term vacation rentals may be insufficient to warrant such a high price point in a tourism-dependent market. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable given the significant markup over fair value and a yield of only 2.4%. The reliance on tourism and limited economic diversity suggest that holding onto this asset could lead to stagnated returns. Value-add renovation Although a value-add renovation could enhance the apartment's appeal, the current listing price of €540,000 is still 24.8% above fair value, making the initial investment risky. Any potential appreciation from renovations may not justify the high entry cost in a neighborhood with modest characteristics and economic limitations.
Economic Vulnerability The economic stability score of 55/100 indicates a higher risk of economic downturns potentially affecting tenant retention and property values.
