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, 4-bathroom apartment of 192 m², built in 2005, energy rating B. Located on rua Reitor Teixeira Guedes, 26, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment includes a large enclosed balcony suitable for laundry or storage, and is situated just a short drive from Faro International Airport and Ilha de Faro beach.
The valuation. The asking price of €630,000 is above the fair value of €585,064, representing a discrepancy of €44,936 (7.1%). This property is considered overpriced based on current market conditions.
Fair value modelled at €585,064 from the area baseline, adjusted for condition and location. Asking €630,000 sits €44,936 (7.1%) above — overpriced versus fair value.
Asking €630,000 versus the rua Reitor Teixeira Guedes, 26 area baseline of €620,352 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 73). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 75 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Reitor Teixeira Guedes, 26
Area baseline €620,352 + condition -€8,400 + location +€43,960 = modelled fair value of €585,064 (€3,047/m²), a €44,936 (7.1%) gap versus the €630,000 asking price.
Long-term rental The 4-bed apartment, listed at €630,000, presents a yield of only 3.4%, indicating limited potential for robust rental income relative to its price. Given the fair value assessment of €585,064, the property is considered overpriced, creating challenges for maintaining long-term tenant interest. Short-term vacation rental While Faro remains a prominent tourist destination, the property’s high asking price at €630,000, compared to a fair value of €585,064, signals that it may not generate sufficient short-term rental returns. The anticipated annual income won't likely justify the initial investment given its overpriced nature and mediocre yield of 3.4%. Family rental For family rentals, the apartment's location near essential amenities is appealing; however, the asking price of €630,000 overstates its value, especially with a fair value determined at €585,064. This misalignment makes it difficult for families to justify the rental cost versus the potential alternatives in a reasonably priced market. Not ideal for: Student housing, Luxury market, High-density urban development The property is not suitable for student housing or the luxury market due to its overpriced status and average condition rating of 72/100. Additionally, the high asking price makes it less favorable for high-density urban development, which typically thrives on price sensitivity and demand for affordability.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of economic downturns affecting tenant demand; coupled with a tenant stability score of 70/100, the potential for increased vacancy rates exists if local economic conditions worsen.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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