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.
5-bedroom, 3-bathroom house of 142 m², built in 1951, energy rating C. Located on rua Doutor José Domingos Garcia Domingues, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The property boasts a covered winter garden and wooden pergolas, enhancing outdoor living while providing shelter and aesthetic appeal throughout the year.
The valuation. The asking price of €375,000 is €48,616 (13.0%) below the fair value of €423,616, indicating that the property is underpriced. This presents a compelling opportunity for investors looking for value in the Faro region.
Fair value modelled at €423,616 from the area baseline, adjusted for condition and location. Asking €375,000 sits €48,616 (13.0%) below — the upside to fair value.
Asking €375,000 versus the rua Doutor José Domingos Garcia Domingues area baseline of €461,642 (€3,251/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 70 · Materials 75 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 64/100 (Housing Market 75 · Amenities 65 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
rua Doutor José Domingos Garcia Domingues
Area baseline €461,642 + condition -€5,547 + location +€22,759 = modelled fair value of €423,616 (€2,983/m²), a €48,616 (13.0%) gap versus the €375,000 asking price.
Short-term vacation rental Given the strong demand for short-term vacation accommodations in Faro, which is strategically located in the Algarve region, this 5-bed house presents a solid investment opportunity. With a gross yield of 4.9% and a valuation gap of 13.0% against fair value, the property is positioned to benefit from both tourism and seasonal residents. Long-term rental The property’s spacious 142m² layout is suitable for long-term tenants seeking quality housing in a well-rated neighborhood, maintaining a condition score of 73/100. The stable yield of 4.9% indicates potential for consistent rental income, especially in a desirable area like Faro. Buy-and-hold With a fair value of €423,616, acquiring this property at €375,000 allows for capital appreciation while generating a competitive gross yield of 4.9%. Investing in this subvalorizada asset provides a cushion against market fluctuations and an opportunity to realize gains as the local real estate market continues to grow. Not ideal for The property is not suitable for student housing or luxury market trends, and its location may not align with family rental expectations. Targeted investments in these segments may not yield the desired returns given the current condition and neighborhood ratings.
Economic and Tenant Instability Risk With both economic stability and tenant stability scores at 55/100, there is a significant risk of tenant turnover and rent fluctuations that could impact cash flow.
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