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 62 m², energy rating C. Located on avenida 5 de Outubro S / N, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This apartment boasts a pleasant balcony that enhances outdoor leisure opportunities and unparalleled natural light, typical of central Avenida 5 de Outubro in Faro.
The valuation. The asking price of €280,000 is substantially higher than the fair value of €185,386, creating a discrepancy of €94,614 (33.8%). This property is regarded as overpriced, which may deter potential investors.
Fair value modelled at €185,386 from the area baseline, adjusted for condition and location. Asking €280,000 sits €94,614 (33.8%) above — overpriced versus fair value.
Asking €280,000 versus the avenida 5 de Outubro S / N area baseline of €177,444 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 83 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 53/100 (Housing Market 60 · Amenities 50 · Economic 50 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
avenida 5 de Outubro S / N
Area baseline €177,444 + condition +€5,813 + location +€2,129 = modelled fair value of €185,386 (€2,990/m²), a €94,614 (33.8%) gap versus the €280,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro S / N | Subject | €280,000 | €4,516 | — | 80 | 53 |
| avenida 5 de Outubro | Active | €280,000 | €5,600 | 24.0% | 75 | 73 |
| avenida 5 de Outubro | Active | €280,000 | €5,283 | 17.0% | 78 | 61 |
| rua Ataide de Oliveira | Active | €408,000 | €4,976 | 10.2% | 73 | 62 |
| rua Ataide de Oliveira | Active | €408,000 | €3,264 | 27.7% | 75 | 62 |
| Median comp | €344,000 | €5,130 | 13.6% | 75 | 62 |
Short-term vacation rental Despite the Algarve's reputation as a prominent tourist region, the property is priced at €280,000, representing a 33.8% gap from its fair value of €185,386, making it an overpriced investment for short-term rentals. With a gross yield of only 3.7% and a neighbourhood score of 53/100, the potential returns do not justify the current valuation. Buy-and-hold Holding this property as a long-term investment is not advisable given its overpriced status, with a fair value significantly lower at €185,386. The combination of a mediocre location rating and a limited tenant pool suggests limited appreciation and cash flow potential over time. Value-add renovation Investing in a value-add renovation strategy for this property is not warranted since the purchase price of €280,000 already exceeds its fair value by 33.8%. Even with renovations, enhancing an already overpriced asset may not yield sufficient returns, especially in a neighbourhood that rates poorly for amenities and tenant quality.
Economic and Tenant Risk With both the economic stability and tenant stability scores at 50/100, there is a significant risk of fluctuating income and potential vacancy issues stemming from an unstable tenant base and economic environment.
