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.
0-bedroom, 0-bathroom mix_use_building of 489 m², energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Feature: The property includes a fully rented commercial space on the ground floor generating a steady income of €1200 per month. Additional Note: All residential apartments are sold furnished with modern appliances.
The valuation. The asking price of €1,290,000 sits €227,622 (17.6%) below the fair value of €1,517,622, making this property subvalued in the current market. Buy-to-flip angle. A strategic resale can capitalize on the property’s high-quality condition and tourist appeal, making it ideal for quick turnover at a higher price. Buy-to-let angle. With the rising demand in a key tourist region, converting this property for short-term vacation rentals can generate substantial returns, despite the currently estimated gross yield of 0%.
Fair value modelled at €1,517,622 from the area baseline, adjusted for condition and location. Asking €1,290,000 sits €227,622 (17.6%) below — the upside to fair value.
Asking €1,290,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €1,589,739 (€3,251/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 79 · Materials 82 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €1,589,739 + condition +€39,731 + location +€78,373 = modelled fair value of €1,517,622 (€3,104/m²), a €227,622 (17.6%) gap versus the €1,290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 603322 | Subject | €1,290,000 | €2,638 | — | 79 | 64 |
| rua do Compromisso | Active | €350,000 | €933 | 64.6% | — | 73 |
| rua Doctor Guilherme Centazzi | Active | €348,000 | €3,164 | 19.9% | 74 | 63 |
| Faro (Sé e São Pedro) · 25f7bb | Active | €540,000 | €4,154 | 57.5% | 80 | 63 |
| rua Doutor Arnaldo Cardoso Vilhena, 31 | Active | €299,000 | €4,041 | 53.2% | 82 | 58 |
| Median comp | €349,000 | €3,603 | 36.6% | 80 | 63 |
Long-term rental As the property is currently subvalorizada at €1,290,000, it presents an opportunity for consistent cash flow in a tourist region where demand remains steady. The building's potential for long-term rental income is further amplified by its favorable condition rating of 80/100, which suggests stability and durability for tenants. Short-term vacation rental Given the property’s subvalorizada status and its location in an important tourist region, it is well-positioned to capitalize on short-term vacation rental demand. Although the yield is currently 0%, the potential for significant rental income during peak seasons can justify the investment despite the seasonal economic challenges. Buy-and-hold Investing in this subvalorizada property allows for long-term appreciation, especially as it stands at a 17.6% gap from its fair value. The solid condition of the building and the enduring tourist demand in Faro position it as a strong candidate for a buy-and-hold strategy, enabling potential future resale at a fair value or better. Not ideal for student housing Given the seasonal nature of employment and the proximity to tourist demands, this property is not conducive for student housing. The transient nature of the local population may lead to higher vacancy rates and inadequate returns for this specific strategy. Not ideal for luxury market The current market conditions and the property’s overall premises define it as unsuitable for entering the luxury market. The more modest neighborhood rating of 64/100 further emphasizes this mismatch with luxury positioning.
Economic Sensitivity Risk With an economic stability score of 60/100, the property may be vulnerable to economic downturns that could affect rental income and occupancy rates.
