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 53 m², energy rating D. Located on avenida 5 de Outubro, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment boasts a rare sea view from its modern open space living area, enhancing everyday living with both tranquility and aesthetic appeal. Location Benefits: Situated on Avenida 5 de Outubro, it offers unparalleled access to local amenities and attractions.
The valuation. The asking price of €280,000 sits €117,334 (41.9%) above the fair value of €162,666, indicating that the property is overpriced. This disparity suggests a limited opportunity for immediate equity upon purchase.
Fair value modelled at €162,666 from the area baseline, adjusted for condition and location. Asking €280,000 sits €117,334 (41.9%) above — overpriced versus fair value.
Asking €280,000 versus the avenida 5 de Outubro area baseline of €151,686 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 83 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
avenida 5 de Outubro
Area baseline €151,686 + condition +€4,306 + location +€6,674 = modelled fair value of €162,666 (€3,069/m²), a €117,334 (41.9%) gap versus the €280,000 asking price.
Short-term vacation rental The property's listing price of €280,000 significantly exceeds the fair value of €162,666 by 41.9%, suggesting it is overpriced. Given the strong tourism influence of the Algarve coast, this might impact the short-term rental profitability negatively. Long-term rental At a current gross yield of 4%, the return on investment appears insufficient when considering the 41.9% gap over the fair value, indicating the property is overpriced. With the neighbourhood's moderate rating of 61/100, potential tenant quality may not meet expectations for long-term rental success. Buy-and-hold Although the property is situated in a tourism-driven area, the substantial markup over its fair value makes it a less attractive buy-and-hold strategy. A yield of 4% does not compensate for the risk associated with holding an asset that is overpriced by 41.9%.
Economic and Tenant Instability With both economic and tenant stability scores at 55/100, there is a significant risk of sudden market shifts leading to increased vacancy rates and reduced rental income.
