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, 3-bathroom house of 93 m², energy rating A. Located on estrada do Passeio Ribeirinho, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This property includes two balconies that provide stunning 180-degree views of the Ria Formosa, perfect for relaxation and entertaining guests.
The valuation. The asking price of €530,000 exceeds the fair value of €290,567 by €239,433 (45.2%), indicating that the property is overpriced. Buy-to-flip angle. A buy-and-flip strategy appears challenging given the current market valuation, limiting potential profit margins. Buy-to-let angle. With a gross yield of 2.8%, long-term rental income estimates around €1,237/month, but the limited luxury market potential could pose risks.
Fair value modelled at €290,567 from the area baseline, adjusted for condition and location. Asking €530,000 sits €239,433 (45.2%) above — overpriced versus fair value.
Asking €530,000 versus the estrada do Passeio Ribeirinho area baseline of €300,483 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 80 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 55 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
estrada do Passeio Ribeirinho
Area baseline €300,483 + condition +€11,625 + location +€12,776 = modelled fair value of €290,567 (€3,124/m²), a €239,433 (45.2%) gap versus the €530,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Passeio Ribeirinho | Subject | €530,000 | €5,699 | — | 80 | 62 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 45.6% | 79 | 60 |
| rua Veríssimo de Almeida | Active | €550,000 | €3,793 | 33.4% | 75 | 71 |
| Montenegro · 4d4683 | Active | €3,300,000 | €6,055 | 6.2% | 88 | 70 |
| rua do Compromisso | Active | €355,000 | €6,455 | 13.3% | 87 | 70 |
| Median comp | €735,000 | €4,924 | 13.6% | 83 | 70 |
Long-term rental The property is overpriced at €530,000, which presents a significant gap of 45.2% compared to the fair value of €290,567, limiting potential for long-term rental returns. With a gross yield of only 2.8%, the investment may not generate sufficient cash flow in a neighborhood scoring 62/100. Short-term vacation rental Given the annual yield of 2.8% and the property's overvaluation, it is unlikely to capture the seasonal demand effectively against its fair value of €290,567. The tourism-driven market dynamics may not compensate for the high entry price, indicating less potential for profitable short-term rental income. Buy-and-hold Acquiring this 2-bed house at an asking price of €530,000 is not a strategic buy-and-hold opportunity due to its fair value being significantly lower at €290,567, creating a 45.2% overvaluation. While the condition rating of 86/100 is appealing, the limited market for luxury properties and subdued neighborhood dynamics may hinder long-term price appreciation.
Economic Vulnerability The property has a moderate economic stability score of 60/100, which indicates a heightened risk of economic fluctuations impacting tenant retention and rental income. Tenant Risk With a tenant stability score of 65/100, there is a significant risk of turnover and vacancy, affecting overall cash flow and 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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