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 apartment of 103 m², built in 1994, energy rating D. Located on estrada Loulé, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This apartment benefits from a 10th-floor location, offering unparalleled unobstructed city views and abundant natural light throughout the day, enhancing its spacious and inviting atmosphere.
The valuation. The asking price of €399,000 sits significantly above the fair value of €306,992, representing an overpricing of €92,008 or 23.1%. This valuation suggests the property is not financially attractive for investment. Buy-to-flip angle. With a considerable margin between the asking price and fair value, a buy-to-flip strategy seems challenging. Flipping this property would likely not yield adequate profits due to its overpriced listing. Buy-to-let angle. The estimated gross yield of 3% at €998/month provides a modest rental income strategy. However, the overpriced nature of the property limits potentially attractive returns for long-term buy-and-hold investors.
Fair value modelled at €306,992 from the area baseline, adjusted for condition and location. Asking €399,000 sits €92,008 (23.1%) above — overpriced versus fair value.
Asking €399,000 versus the estrada Loulé area baseline of €294,786 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 (Condition 63 · Materials 68 · Room dimensions 66). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
estrada Loulé
Area baseline €294,786 + condition -€16,094 + location +€28,299 = modelled fair value of €306,992 (€2,981/m²), a €92,008 (23.1%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada Loulé | Subject | €399,000 | €3,874 | — | 63 | 74 |
| Faro (Sé e São Pedro) · 25f629 | Active | €399,000 | €3,874 | 0% | 63 | 61 |
| Faro (Sé e São Pedro) · 1e6017 | Active | €305,000 | €2,905 | 25.0% | 60 | 70 |
| Faro (Sé e São Pedro) · 25f545 | Active | €285,000 | €4,071 | 5.1% | 70 | 64 |
| Faro (Sé e São Pedro) · 6d5230 | Active | €675,000 | €3,261 | 15.8% | 70 | 63 |
| Median comp | €352,000 | €3,568 | 7.9% | 67 | 64 |
Long-term rental This 2-bed apartment in Faro is overpriced by 23.1% compared to its fair value of €306,992, making long-term rental a less attractive option given the projected yield of 3%. The neighborhood's decent quality score of 74 suggests some tenant demand, but the gap from fair value indicates a potential strain on rental margins. Short-term vacation rental With the listing price of €399,000 far exceeding its fair value, this property is likely not suitable for short-term vacation rental strategies that depend on strong cash flows. Seasonal tourism may support rental income, but the overpriced nature of the apartment raises serious concerns about return on investment. Buy-and-hold While the location in Faro has its merits, the significant overpricing at €399,000 reduces the viability of a buy-and-hold strategy given the 3% gross yield. Holding onto an asset that is 23.1% above fair value poses risks for capital appreciation and overall portfolio health. Not ideal for: Despite its decent condition and neighborhood rating, this property is not ideal for student housing, industrial developments, or value-add renovations due to its significant overvaluation.
Economic Instability Risk The economic stability score of 65 indicates a moderate level of risk, suggesting potential fluctuations in market conditions that could negatively impact property value.
