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.
2-bedroom, 1-bathroom house of 75 m², built in 2021, energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This property boasts a generous 1866m² outdoor space featuring a leisure area and a fully fenced agricultural zone, ideal for gardening enthusiasts or family gatherings.
The valuation. The asking price of €595,000 significantly exceeds the fair value of €230,420, representing a premium of €364,580 (61.3%). This indicates that the property is overpriced and does not present a rational investment opportunity based on its current price.
Fair value modelled at €230,420 from the area baseline, adjusted for condition and location. Asking €595,000 sits €364,580 (61.3%) above — overpriced versus fair value.
Asking €595,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €214,650 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 76 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €214,650 + condition +€3,750 + location +€12,020 = modelled fair value of €230,420 (€3,072/m²), a €364,580 (61.3%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 6fbb6b | Subject | €595,000 | €7,933 | — | 76 | 64 |
| Faro (Sé e São Pedro) · 0902d9 | Active | €595,000 | €5,891 | 25.7% | 78 | 62 |
| Faro (Sé e São Pedro) · 001a66 | Active | €350,000 | €4,861 | 38.7% | 70 | 63 |
| Conceição e Estoi · ba58f5 | Active | €655,000 | €3,541 | 55.4% | 70 | 60 |
| avenida 5 de Outubro | Active | €280,000 | €5,600 | 29.4% | 75 | 73 |
| Median comp | €472,500 | €5,231 | 34.1% | 73 | 63 |
Long-term rental The property's gross yield of 1.8% suggests that it is not yielding sufficient returns for a long-term rental investment. Coupled with the significant gap of 61.3% from its fair value of €230,420, this property appears to be overpriced in the current market. Short-term vacation rental Although Faro benefits from tourism, the high listing price of €595,000 does not align well with the expected yield and may deter potential short-term renters. Given the substantial overpricing relative to fair value, this strategy may not be viable for generating profitable returns. Buy-and-hold Investing in this property as a buy-and-hold strategy risks significant losses due to its current valuation being 61.3% above fair value. The low gross yield of 1.8% and the unfavorable pricing suggest that this investment would likely underperform over time as equity growth is compromised by the inflated purchase price.
Economic Vulnerability The economic stability score of 55/100 indicates a heightened risk of economic downturns that could impact rental income. Tenant Turnover Risk With a tenant stability score of 60/100, there is a potential for higher turnover rates, leading to increased vacancy periods and associated costs.
