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, 0-bathroom house of 105 m², built in 1986, energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Highlight: This property features a spacious private yard, ideal for outdoor dining and relaxation, nestled in the vibrant heart of Faro, just steps from local amenities.
The valuation. The asking price of €698,000 is significantly above the fair value of €329,911, marking a discrepancy of €368,089 or 52.7%. The property is deemed overpriced. Buy-to-flip angle. A buy-to-flip strategy would focus on quick renovations to enhance appeal for resale, targeting a price increase beyond the current asking price, which is unjustifiably high. Buy-to-let angle. A buy-to-let approach could yield a gross yield of 2.2%, with an estimated rental income of €1,280/month, making it a low-return investment given the price point but potentially steady cash flow in a tourist-popular area.
Fair value modelled at €329,911 from the area baseline, adjusted for condition and location. Asking €698,000 sits €368,089 (52.7%) above — overpriced versus fair value.
Asking €698,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €300,510 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 65 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €300,510 + condition +€6,563 + location +€22,839 = modelled fair value of €329,911 (€3,142/m²), a €368,089 (52.7%) gap versus the €698,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 49b840 | Subject | €698,000 | €6,648 | — | 75 | 69 |
| Faro (Sé e São Pedro) · 4a81cc | Active | €230,000 | €3,433 | 48.4% | 62 | 60 |
| rua do Trem, 13 | Active | €850,000 | €2,833 | 57.4% | 70 | 70 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 3.7% | 78 | 60 |
| rua de Santo António | Active | €370,000 | €3,895 | 41.4% | 45 | 73 |
| Median comp | €610,000 | €3,664 | 44.9% | 66 | 65 |
Long-term rental The property in Faro is currently overpriced, making it a less attractive option for long-term rental investments. With a gross yield of only 2.2% and a substantial gap from fair value, potential cash flow and ROI are severely limited. Short-term vacation rental While the property is strategically located near the Algarve coast and benefits from high tourism demand, its current price point renders it overpriced for short-term vacation rental strategies. The high gap versus fair value suggests that achieving a sustainable rental income will be challenging under current conditions. Buy-and-hold As a buy-and-hold investment, this property is overpriced, which reduces its potential for long-term appreciation and capital gains. The lack of alignment between the purchase price and fair value indicates that the financial returns might be inadequate over time, especially with a modest yield of 2.2%.
Economic downturn risk With an economic stability score of 65/100, there is a potential risk that economic factors could negatively impact the property's value and rental income stability.
