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, 2-bathroom apartment of 207 m², energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property features two spacious balconies that seamlessly connect the interior to the vibrant urban surroundings, enhancing both natural light and outdoor enjoyment.
The valuation. The asking price of €675,000 sits €60,492 (9.0%) above the fair value of €614,508, indicating that the property is overpriced. This misalignment suggests a more cautious approach for potential investors.
Fair value modelled at €614,508 from the area baseline, adjusted for condition and location. Asking €675,000 sits €60,492 (9.0%) above — overpriced versus fair value.
Asking €675,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €592,434 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €592,434 + condition -€8,733 + location +€30,807 = modelled fair value of €614,508 (€2,969/m²), a €60,492 (9.0%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 6d5230 | Subject | €675,000 | €3,261 | — | 70 | 63 |
| rua Doutor Olímpio Passos Valente, 13 | Active | €472,000 | €3,933 | 20.6% | 74 | 68 |
| estrada Loulé | Active | €399,000 | €3,874 | 18.8% | 63 | 74 |
| avenida Doctor Gordinho Moreira, 6 | Active | €367,000 | €2,719 | 16.6% | 70 | 62 |
| Faro (Sé e São Pedro) · 956cc7 | Active | €390,000 | €4,815 | 47.7% | 67 | 59 |
| Median comp | €394,500 | €3,904 | 19.7% | 69 | 65 |
Short-term vacation rental Given the seasonal economic activity in Algarve, the property may struggle to generate consistent occupancy rates, making it less appealing for a short-term vacation rental strategy. Additionally, with the property listed at €675,000, it is overpriced compared to the fair value of €614,508, limiting potential returns for investors. Buy-and-hold Considering the property's high asking price of €675,000 against a fair value of €614,508, the buy-and-hold strategy may lead to limited appreciation and lower overall returns. Furthermore, with a gross yield of only 2.6%, the investment does not meet attractive return thresholds for long-term holding. Long-term rental Although long-term rentals may provide steady cash flow, the current listing price of €675,000 is overpriced compared to the fair value of €614,508, which could impact future rent adjustments. The gross yield of 2.6% indicates a lackluster return, especially in a neighborhood rated 63/100 for tenant quality.
Economic and Tenant Instability With both economic stability and tenant stability scores at 60/100, there is a heightened risk of fluctuating rental income and potential vacancies, impacting overall returns significantly.
