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, energy rating D. Located on rua Frederico Lecor, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property features two independent entrances, enhancing its remodeling potential, and includes the possibility of a setback to increase living space significantly.
The valuation. The asking price of €295,000 sits significantly above the fair value of €176,400, resulting in an overpriced property by €118,600 (67.2%). This discrepancy suggests that potential investors should be cautious. Buy-to-flip angle. A buy-to-flip strategy would rely on renovating the property to enhance its appeal and justify a higher resale price. However, the current condition of 30/100 may limit profit potential post-renovation. Buy-to-let angle. With an estimated rental income of €811/month, the gross yield is 3.3%, which indicates modest returns for a buy-to-let strategy. However, the dated materials and finishes may impact tenant desirability and retention.
Fair value modelled at €176,400 from 5 comparable sales in the area. Asking €295,000 sits €118,600 (67.2%) above — overpriced versus fair value.
Asking €295,000 versus the rua Frederico Lecor area baseline of €193,315 (€3,068/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 30/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €193,315, adjusted for condition and micro-location, gives a modelled fair value of €176,400 (€2,800/m²), a €118,600 (67.2%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Frederico Lecor | Subject | €295,000 | €4,683 | — | 25 | 67 |
| 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 |
| Faro (Sé e São Pedro) · 38b217 | Active | €425,000 | €2,607 | 44.3% | 25 | 74 |
| Median comp | €397,500 | €3,117 | 33.4% | 35 | 73 |
Short-term vacation rental While the proximity to Faro and Algarve tourist activity may seem appealing, the property is overpriced by 67.2% compared to its fair value, limiting potential returns. Additionally, with a gross yield of only 3.3% and a condition rating of 30/100, it may not attract the ideal clientele for vacation rentals. Long-term rental Considering the property is overpriced by 67.2% and the gross yield stands at just 3.3%, sustainable long-term rental income may be challenging to achieve. Furthermore, the neighborhood score of 67/100 indicates average appeal, which coupled with the property’s condition could deter potential long-term tenants. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable given its significant overpricing of 67.2% against the fair value, which diminishes future appreciation potential. The low condition rating of 30/100 further exacerbates this risk, limiting the property’s ability to generate value over time.
Economic Vulnerability With an economic stability score of 60/100, there is an increased risk of market fluctuations adversely affecting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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