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.
1-bedroom, 1-bathroom house of 66 m², built in 1966. Located on largo do Carmo, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property includes an attic and terrace, providing potential for additional storage and outdoor leisure space, despite its current state of neglect.
The valuation. The asking price of €217,000 is significantly below the fair value of €309,048, resulting in a discount of €92,048 (29.8%). This positions the property as an attractive investment opportunity. Buy-to-flip angle. Utilizing the current below-market pricing, a buy-to-flip strategy can capitalize on potential renovations and improvements, targeting a resale price above the fair value within a short timeframe. Buy-to-let angle. Given the estimated monthly rental income of €904, the property can achieve a gross yield of 5%, making it a favorable option for long-term rental in a tourist-driven market.
Fair value modelled at €309,048 from 6 comparable sales in the area. Asking €217,000 sits €92,048 (29.8%) below — the upside to fair value.
Asking €217,000 versus the largo do Carmo area baseline of €362,799 (€5,497/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 24/100 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 €362,799, adjusted for condition and micro-location, gives a modelled fair value of €309,048 (€4,683/m²), a €92,048 (29.8%) gap versus the €217,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| largo do Carmo | Subject | €217,000 | €3,288 | — | 20 | 68 |
| rua Frederico Lecor | Active | €295,000 | €4,683 | 42.4% | 25 | 67 |
| Faro (Sé e São Pedro) · cfdc00 | Active | €700,000 | €2,800 | 14.8% | 15 | 73 |
| Faro (Sé e São Pedro) · 91139e | Active | €295,000 | €4,683 | 42.4% | 32 | 65 |
| Montenegro · e40add | Active | €2,000,000 | €12,048 | 266.4% | — | 62 |
| Median comp | €497,500 | €4,683 | 42.4% | 25 | 66 |
Long-term rental This property presents a significant opportunity for long-term rental investment due to its current underpriced status at €217,000 compared to the fair value of €309,048, representing a 29.8% gap. The gross yield of 5% suggests steady cash flow, benefiting from the stable demand in the tourist-friendly Algarve region. Short-term vacation rental Given the appealing location in Faro's tourism-driven economy, acquiring this property for short-term vacation rental will likely yield robust returns, especially considering its undervalued listing. With the neighbourhood rating of 68/100, it attracts seasonal visitors looking for accommodations, which can enhance overall rental income potential. Buy-and-hold The strategic move of buying and holding this property could reward investors, as it is currently valued significantly lower than its fair market worth, making it an attractive long-term asset. With the property's condition rating at 24/100, there may be room for renovations that would further increase its value in the growing Algarve market.
Economic Vulnerability The property faces a risk due to its low economic stability score of 55/100, indicating potential vulnerabilities in sustaining rental income during economic downturns.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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