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.
4-bedroom, 2-bathroom house of 285 m², built in 1951, energy rating F. Located on rua do Compromisso, 35, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property features high ceilings allowing potential mezzanine development and three terraces, including one with sea views, perfect for maximizing rental opportunities in a prime location.
The valuation. The asking price of €589,000 is significantly below the fair value estimate of €752,246, representing a difference of €163,246 (27.7%). This indicates that the property is currently underpriced and presents a favorable opportunity for potential investors.
Fair value modelled at €752,246 from the area baseline, adjusted for condition and location. Asking €589,000 sits €163,246 (27.7%) below — the upside to fair value.
Asking €589,000 versus the rua do Compromisso, 35 area baseline of €815,670 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 51/100 (Condition 48 · Materials 55 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 64/100 (Housing Market 60 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua do Compromisso, 35
Area baseline €815,670 + condition -€109,102 + location +€45,678 = modelled fair value of €752,246 (€2,639/m²), a €163,246 (27.7%) gap versus the €589,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Compromisso, 35 | Subject | €589,000 | €2,067 | — | 48 | 64 |
| rua de Santo António | Active | €370,000 | €3,895 | 88.5% | 45 | 73 |
| estrada nacional 125. | Active | €570,000 | €2,727 | 32.0% | 65 | 72 |
| Faro (Sé e São Pedro) · 38b217 | Active | €425,000 | €2,607 | 26.2% | 25 | 74 |
| Faro (Sé e São Pedro) · cfdf21 | Active | €426,000 | €2,420 | 17.1% | 54 | 60 |
| Median comp | €425,500 | €2,667 | 29.0% | 50 | 73 |
Long-term rental The property presents a compelling investment opportunity due to its pricing, resulting in a fair value gap of 27.7%, signaling it is currently underpriced. With a gross yield of 5.1%, it provides a solid income stream in an area where economic indicators and tenant quality support sustainable rental demand. Family rental Given the substantial difference between the listing price and the assessed fair value, this property is an attractive option for family rentals, featuring spacious accommodations. The neighborhood amenities and decent tenant quality further enhance its appeal as an ideal home for families seeking to settle in the region. Buy-and-hold The property’s current valuation positions it as a strong buy-and-hold asset, as it is underpriced compared to its fair value, allowing for potential appreciation over time. The combination of a stable yield and the positive economic outlook in the Algarve inland region suggest promising long-term returns on investment.
Economic Vulnerability With an economic stability score of 55/100, the property may be at risk due to potential economic downturns impacting tenant demand and rental income stability.
