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.
4-bedroom, 1-bathroom house of 197 m², built in 1943. Located on largo da Madalena, 3, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Investment potential: This property includes two stories and is situated near main road access, making it ideal for renovation and future rental opportunities in a central location. Condition: Requires extensive renovation due to severe disrepair and structural issues.
The valuation. The asking price of €165,000 is significantly below the fair value of €417,253, presenting a remarkable opportunity as it's underpriced by €252,253 (152.9%).
Fair value modelled at €417,253 from the area baseline, adjusted for condition and location. Asking €165,000 sits €252,253 (152.9%) below — the upside to fair value.
Asking €165,000 versus the largo da Madalena, 3 area baseline of €640,447 (€3,251/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 12/100 (Condition 10 · Materials 15 · Room dimensions 20). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
largo da Madalena, 3
Area baseline €640,447 + condition -€193,922 + location +€47,360 = modelled fair value of €417,253 (€2,118/m²), a €252,253 (152.9%) gap versus the €165,000 asking price.
Long-term rental The property in Faro, with a gross yield of 12.5%, demonstrates strong potential for consistent rental income in a region with significant housing demand influenced by tourism. Given the fair value of €417,253, capitalizing on this investment can lead to substantial appreciation over time. Short-term vacation rental With its proximity to coastal amenities and the thriving tourism sector in Faro, this 4-bed house offers a prime candidate for the short-term vacation rental market. The attractive yield of 12.5% presents an excellent opportunity to capitalize on the influx of tourists, enhancing overall returns significantly. Buy-and-hold Investing in this property aligns strategically with a buy-and-hold approach, as the substantial gap to fair value suggests possible future appreciation and profitability. The appealing rental yield combined with the economic activity in the area makes it a compelling choice for investors seeking long-term growth. Not ideal for: The property is not suitable for student housing or the luxury market due to its location and condition, which may limit tenant quality and potential rental pricing.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of economic downturn affecting tenant retention and rental income potential.
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