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 80 m², built in 1983. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This apartment offers unobstructed views of Ria Formosa, enhancing its appeal in a prime location close to the City River Park and various amenities.
The valuation. The asking price of €269,000 is significantly above the fair value of €207,524, indicating an overvaluation of €61,476 (22.9%). This price does not reflect the current market conditions. Buy-to-flip angle. The buy-to-flip strategy in this case would require substantial renovations to update the dated materials and enhance appeal, which may temporarily increase overall costs but should align with Algarve’s competitive resale market. Buy-to-let angle. Opting for a buy-to-let strategy, this property could potentially generate an estimated rental income of €964/month, translating to a gross yield of 4.3%, appealing for long-term family rentals or short-term vacation rentals given its location.
Fair value modelled at €207,524 from the area baseline, adjusted for condition and location. Asking €269,000 sits €61,476 (22.9%) above — overpriced versus fair value.
Asking €269,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €260,080 (€3,251/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 41/100 (Condition 37 · Materials 45 · Room dimensions 50). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €260,080 + condition -€42,500 + location +€21,064 = modelled fair value of €207,524 (€2,594/m²), a €61,476 (22.9%) gap versus the €269,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 95706e | Subject | €269,000 | €3,363 | — | 37 | 73 |
| Faro (Sé e São Pedro) · 937435 | Active | €266,000 | €3,500 | 4.1% | 45 | 60 |
| Faro (Sé e São Pedro) · f35f92 | Active | €225,000 | €2,813 | 16.4% | 55 | 70 |
| Faro (Sé e São Pedro) · 1e6017 | Active | €305,000 | €2,905 | 13.6% | 60 | 70 |
| Faro (Sé e São Pedro) · 25f629 | Active | €399,000 | €3,874 | 15.2% | 63 | 61 |
| Median comp | €285,500 | €3,203 | 4.8% | 58 | 66 |
Short-term vacation rental The current listing price of €269,000 for this 2-bed apartment in Faro is significantly above the fair value of €207,524, indicating it is overpriced by 22.9%. With a gross yield of 4.3%, the investment may struggle to generate attractive returns in a competitive vacation rental market. Buy-and-hold This property, with a market price exceeding its fair value, presents a less appealing buy-and-hold opportunity in a market that is experiencing pricing pressures. The 41/100 condition rating may require significant investment to maintain or enhance value over time, further complicating long-term profitability. Family rental As a family rental investment, this apartment's elevated price does not align with its fair value, making it a risky venture in a neighborhood with mixed tenant quality. Additionally, the property’s condition rating of 41/100 raises concerns about ongoing maintenance costs and tenant satisfaction, potentially impacting rental income stability.
Economic Concern The economic stability score of 65/100 indicates a moderate risk due to potential fluctuations in market conditions that could impact tenant demand.
