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 73 m², energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment boasts excellent room distribution with the potential for conversion to a 3-bedroom, maximizing rental and personal use opportunities in a prime location. Location: Just minutes from the University of Faro, ensuring high rental demand.
The valuation. The asking price of €280,000 sits €23,742 (9.3%) above the fair value of €256,258, indicating that while this property is fairly valued, it does not present an opportunity for immediate profit. Buy-to-flip angle. A buy-to-flip strategy could involve minor renovations, potentially elevating the finish quality and allowing for a resale at a higher price point in a tourist-centric market. Buy-to-let angle. With an estimated rental income of €957 per month, the property could yield a gross annual return of 4.1%, capitalizing on the seasonal demand for vacation rentals in the Algarve region.
Fair value modelled at €256,258 from 6 comparable sales in the area. Asking €280,000 sits €23,742 (9.3%) above — overpriced versus fair value.
Asking €280,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €244,630 (€3,351/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 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 €244,630, adjusted for condition and micro-location, gives a modelled fair value of €256,258 (€3,510/m²), a €23,742 (9.3%) gap versus the €280,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 86cc04 | Subject | €280,000 | €3,836 | — | 62 | 57 |
| Faro (Sé e São Pedro) · 25f545 | Active | €285,000 | €4,071 | 6.1% | 70 | 64 |
| Faro (Sé e São Pedro) · 1e6017 | Active | €305,000 | €2,905 | 24.3% | 60 | 70 |
| praceta Azedo Gneco | Active | €335,000 | €3,418 | 10.9% | 65 | 62 |
| rua Miguel Bombarda, 3-5 | Active | €299,000 | €3,602 | 6.1% | 62 | 64 |
| Median comp | €302,000 | €3,510 | 8.5% | 64 | 64 |
Short-term vacation rental With a fair value of €256,258, the property is priced at €280,000, indicating a moderate gap of 9.3%, and is therefore not the best candidate for aggressive short-term rental strategies. Its 4.1% gross yield and the seasonal economy of Algarve suggest that while tourist demand exists, tenant stability may be problematic, making this less attractive for consistent cash flow. Buy-and-hold The apartment's fair pricing offers a reasonable entry point into the Faro market; however, with the current valuation reflecting a 9.3% premium, long-term appreciation may not be guaranteed. Given the neighbourhood's 57/100 rating, the slow growth in tenant quality and economic conditions could hinder potential profitability in a buy-and-hold strategy.
Economic and Tenant Instability Risk The property may face challenges due to its low economic stability score of 55/100 and a tenant stability score of 50/100, suggesting potential difficulties in maintaining consistent rental income and property value.
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