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, 2-bathroom house of 55 m². Located on rua do Compromisso, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property boasts a charming terrace, perfect for outdoor leisure, and is situated in a prime downtown location, just steps from Faro's vibrant historical center.
The valuation. The asking price of €355,000 is significantly above the fair value of €176,878, representing an inflated premium of €178,122 or 50.2%. This indicates that the property is overpriced in the current market. Buy-to-flip angle. A buy-to-flip strategy may face challenges due to the high initial cost, yet renovations could target affluent buyers looking for premium vacation homes in the Algarve area. Time on the market may be extended due to the current valuation. Buy-to-let angle. With an estimated rental income of €947 per month, the gross yield stands at a modest 3.2%. However, the potential for tourist demand in this prime Algarve location can enhance attractiveness for short-term vacation rentals.
Fair value modelled at €176,878 from the area baseline, adjusted for condition and location. Asking €355,000 sits €178,122 (50.2%) above — overpriced versus fair value.
Asking €355,000 versus the rua do Compromisso area baseline of €177,705 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 87 · Materials 82 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Compromisso
Area baseline €177,705 + condition +€6,875 + location +€12,593 = modelled fair value of €176,878 (€3,216/m²), a €178,122 (50.2%) gap versus the €355,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Compromisso | Subject | €355,000 | €6,455 | — | 87 | 70 |
| Faro (Sé e São Pedro) · 49b840 | Active | €698,000 | €6,648 | 3.0% | 75 | 69 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 6.8% | 78 | 60 |
| rua Veríssimo de Almeida | Active | €550,000 | €3,793 | 41.2% | 75 | 71 |
| Montenegro · 0016d4 | Active | €945,000 | €4,565 | 29.3% | 80 | 63 |
| Median comp | €821,500 | €5,607 | 13.1% | 77 | 66 |
Short-term vacation rental The property is overpriced with a listing price of €355,000, significantly above its fair value of €176,878, resulting in a 50.2% gap. Despite the Algarve's strong tourism performance, the current yield of 3.2% does not justify this investment for short-term vacation rentals. Buy-and-hold With a fair value of €176,878 contrasted with a listing price of €355,000, this property represents an investment gap of 50.2%, categorizing it as overpriced. The 3.2% gross yield is insufficient to support a buy-and-hold strategy in a market that is already weakened by inflated prices. Family rental The property, with a current listing of €355,000, is overpriced compared to its fair value of €176,878, demonstrating a significant 50.2% discrepancy. This elevated price level, coupled with a gross yield of only 3.2%, renders it an unappealing choice for family rental investment in the region.
Economic volatility risk With an economic stability score of 65/100, there is a significant risk of economic downturns impacting rental demand and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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