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 50 m², energy rating C. Located on avenida 5 de Outubro, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment boasts a spacious balcony perfect for outdoor relaxation, located in the upscale district offering vibrant city life and easy access to amenities.
The valuation. The asking price of €280,000 is significantly above the fair value of €160,406, representing an overpricing of €119,594 (42.7%). This discrepancy suggests a potentially risky investment. Buy-to-flip angle. A wholesale strategy could be implemented by renovating the apartment to enhance its appeal and potentially reselling at a profit, although the current high price dampens anticipated gains. Buy-to-let angle. With an estimated rental income of €747/month, the gross yield stands at 3.2%. However, this return may not justify the high acquisition cost in a competitive rental market.
Fair value modelled at €160,406 from the area baseline, adjusted for condition and location. Asking €280,000 sits €119,594 (42.7%) above — overpriced versus fair value.
Asking €280,000 versus the avenida 5 de Outubro area baseline of €143,100 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
avenida 5 de Outubro
Area baseline €143,100 + condition +€4,141 + location +€13,165 = modelled fair value of €160,406 (€3,208/m²), a €119,594 (42.7%) gap versus the €280,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro | Subject | €280,000 | €5,600 | — | 75 | 73 |
| avenida 5 de Outubro S / N | Active | €280,000 | €4,516 | 19.4% | 80 | 53 |
| avenida 5 de Outubro | Active | €280,000 | €5,283 | 5.7% | 78 | 61 |
| rua Ataide de Oliveira | Active | €408,000 | €4,976 | 11.1% | 73 | 62 |
| Faro (Sé e São Pedro) · 25f7bb | Active | €540,000 | €4,154 | 25.8% | 80 | 63 |
| Median comp | €344,000 | €4,746 | 15.2% | 79 | 62 |
Short-term vacation rental The property is overpriced compared to its fair value of €160,406, presenting a significant gap of 42.7%. At a gross yield of only 3.2%, potential returns for vacation rentals are not compelling enough to justify the elevated price. Buy-and-hold With a fair value significantly lower than the listing price, this 1-bed apartment in Faro is clearly overpriced at €280,000. The 3.2% gross yield does not support a long-term investment strategy, as the returns are insufficient for the price premium. Long-term rental The high listing price of €280,000 reflects an inflated valuation when compared to the fair value of €160,406, indicating that this property is overpriced. Given the gross yield of just 3.2%, long-term rental viability is severely limited by the excessive cost relative to market expectations.
Economic Sensitivity Risk: With both economic stability and tenant stability scores at 70/100, there is a potential vulnerability to market fluctuations that could affect rental income stability or property value.
