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 house of 63 m², built in 1951, energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This property features a spacious outdoor area that allows for potential expansion and creative landscaping, along with the possibility of adding an additional floor, enhancing its value significantly.
The valuation. The asking price of €295,000 is well above the fair value of €150,765, representing a premium of €144,235 (48.9%). Verdict: overpriced.
Fair value modelled at €150,765 from the area baseline, adjusted for condition and location. Asking €295,000 sits €144,235 (48.9%) above — overpriced versus fair value.
Asking €295,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €203,553 (€3,231/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 34/100 (Condition 32 · Materials 35 · Room dimensions 37). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 60 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Faro (Sé e São Pedro), Faro, Faro
Area baseline €203,553 + condition -€40,359 + location +€10,818 = modelled fair value of €150,765 (€2,393/m²), a €144,235 (48.9%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 91139e | Subject | €295,000 | €4,683 | — | 32 | 65 |
| Montenegro · e40add | Active | €2,000,000 | €12,048 | 157.3% | — | 62 |
| rua de Santo António | Active | €370,000 | €3,895 | 16.8% | 45 | 73 |
| Faro (Sé e São Pedro) · 4a81cc | Active | €230,000 | €3,433 | 26.7% | 62 | 60 |
| Faro (Sé e São Pedro) · cfdc00 | Active | €700,000 | €2,800 | 40.2% | 15 | 73 |
| Median comp | €535,000 | €3,664 | 21.8% | 45 | 68 |
Long-term rental This 2-bed house in Faro is priced significantly above its fair value, making it a risky investment for long-term rental strategies. With a yield of only 3.6% and a condition rating of 34/100, potential returns may not justify the high purchase price. Short-term vacation rental At €295,000, this property is overpriced compared to its fair value of €150,765, limiting the profitability of a short-term vacation rental strategy. The property's average condition and the high gap from fair value suggest that managing expectations will be crucial in attracting tourists. Buy-and-hold Investing in this 2-bed house for a buy-and-hold strategy could prove unwise given its current listing price is 48.9% above fair value. The steady tourist flow in Faro is encouraging, but the significant overpricing and low condition rating severely diminish long-term capital appreciation prospects.
Economic Dependency Risk With both the economic stability and tenant stability scores at 65/100, there is a significant risk that local economic fluctuations could adversely impact tenant retention and rental income.
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