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 96 m², energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment boasts stunning views of the city and sea from the 7th-floor balcony, enhancing its appeal for relaxation and outdoor enjoyment. Condition Notes: Its charming blend of modern updates with traditional features provides a unique character not commonly found in typical listings.
The valuation. The asking price of €340,000 is significantly above the fair value of €275,190, resulting in an overpricing of €64,810 (19.1%). This indicates a lack of alignment between market expectations and actual market conditions. Buy-to-flip angle. A wholesale strategy could involve renovations to enhance the property’s aesthetic appeal and subsequently reselling it at a premium. Given the estimated fair value, potential profits appear limited unless substantial improvements are executed. Buy-to-let angle. A rental income strategy suggests leveraging the stable demand due to tourism, with a projected gross yield of 3.5%, translating to approximately €992 per month. This could potentially offer steady cash flow in a mixed-neighborhood setting.
Fair value modelled at €275,190 from the area baseline, adjusted for condition and location. Asking €340,000 sits €64,810 (19.1%) above — overpriced versus fair value.
Asking €340,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €310,176 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 (Condition 65 · Materials 68 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 62/100 (Housing Market 60 · Amenities 65 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €310,176 + condition -€12,750 + location +€13,188 = modelled fair value of €275,190 (€2,867/m²), a €64,810 (19.1%) gap versus the €340,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · dc149b | Subject | €340,000 | €3,542 | — | 65 | 62 |
| Faro (Sé e São Pedro) · b7c1fb | Active | €295,000 | €3,172 | 10.4% | 68 | 65 |
| Faro (Sé e São Pedro) · 4d4500 | Active | €287,500 | €4,228 | 19.4% | 68 | 62 |
| estrada Loulé | Active | €399,000 | €3,874 | 9.4% | 63 | 74 |
| Faro (Sé e São Pedro) · 1e6017 | Active | €305,000 | €2,905 | 18.0% | 60 | 70 |
| Median comp | €300,000 | €3,523 | 0.5% | 66 | 68 |
Long-term rental The property is overpriced at €340,000 compared to the fair value of €275,190, resulting in a significant gap of 19.1%. Given the gross yield of only 3.5% and a condition rating of 67/100, this property may not provide a favorable long-term rental return. Short-term vacation rental Despite the potential for rental income in a tourist area, the property is priced above its fair value, making it less appealing for short-term vacation rentals. A 3.5% gross yield indicates that the property might not attract competitive rental rates necessary to justify the investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable due to its overvaluation at €340,000, significantly exceeding the fair value of €275,190. The low yield of 3.5% and the rating of the neighborhood at 62/100 suggest limited appreciation potential, making it a risky long-term investment.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk of fluctuations that could negatively impact the property's performance.
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