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 120 m², energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: Each studio comes equipped with individual utilities, ensuring seamless management and optimizing income potential for the investor.
The valuation. The asking price of €595,000 is significantly above the fair value of €383,225, representing an overvaluation of €211,775 (35.6%). This price position suggests the property is expensive relative to its intrinsic worth.
Fair value modelled at €383,225 from the area baseline, adjusted for condition and location. Asking €595,000 sits €211,775 (35.6%) above — overpriced versus fair value.
Asking €595,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €387,720 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €387,720 + condition +€9,562 + location +€30,223 = modelled fair value of €383,225 (€3,194/m²), a €211,775 (35.6%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · b7c2b5 | Subject | €595,000 | €4,958 | — | 75 | 72 |
| Faro (Sé e São Pedro) · 6d5420 | Active | €890,000 | €7,008 | 41.3% | 82 | 69 |
| Faro (Sé e São Pedro) · 6d54cd | Active | €650,000 | €4,643 | 6.4% | 60 | 59 |
| largo do Sol Posto | Active | €650,000 | €3,155 | 36.4% | 72 | 63 |
| avenida Calouste Gulbenkian | Active | €237,500 | €4,481 | 9.6% | 72 | 58 |
| Median comp | €650,000 | €4,562 | 8.0% | 72 | 61 |
Short-term vacation rental The property’s gross yield of 3.4% is not sufficient for the short-term vacation rental strategy, especially in a market where significant competition and higher performing rentals may exist. Additionally, priced at €595,000, it exceeds the fair value of €383,225 by 35.6%, suggesting it is not a sound investment for vacation rental purposes. Long-term rental With the apartment’s current listing price being 35.6% higher than its fair value, the investment potential for long-term rental is diminished, creating challenges in achieving a desirable return. The relatively low yield of 3.4% also indicates that this property is not conducive for sustainable long-term rental income. Buy-and-hold The buy-and-hold strategy is compromised as the property’s price reflects a 35.6% gap above its fair value, which may lead to stagnant or negative capital appreciation. Coupled with a modest gross yield of 3.4%, the overall investment case appears weak for a buy-and-hold approach. Not ideal for student housing Given the apartment’s pricing is out of alignment with fair value by 35.6%, it lacks the financial attractiveness necessary for student housing, where cost-effective options are prioritized. Moreover, the overall yield of 3.4% does not support the ideal rental return expected from properties targeting student tenants.
Economic Vulnerability The property faces a moderate risk due to both its economic stability score of 70/100 and its tenant stability score of 70/100, indicating potential fluctuations in revenue and occupancy rates that could negatively impact investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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