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.
3-bedroom, 2-bathroom apartment of 120 m² on the 6th floor, built in 2018, energy rating A. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This property boasts three private balconies offering unobstructed views of Ria Formosa, enhancing outdoor enjoyment in a highly sought-after downtown location.
The valuation. The asking price of €775,000 exceeds the fair value of €560,066 by €214,934 (38.4%), indicating the property is overpriced. This discrepancy suggests potential challenges in achieving a profitable return on investment within a reasonable timeframe.
Fair value modelled at €560,066 from 6 comparable sales in the area. Asking €775,000 sits €214,934 (38.4%) above — overpriced versus fair value.
Asking €775,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €495,943 (€4,133/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting 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 €495,943, adjusted for condition and micro-location, gives a modelled fair value of €560,066 (€4,667/m²), a €214,934 (38.4%) gap versus the €775,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 14410e | Subject | €775,000 | €6,458 | — | 78 | 62 |
| Faro (Sé e São Pedro) · dee504 | Active | €500,000 | €4,310 | 33.3% | 82 | 71 |
| rua do Alportel, 325 | Active | €417,000 | €5,024 | 22.2% | 84 | 65 |
| rua Pintor Carlos Porfirio | Active | €890,000 | €5,855 | 9.3% | 85 | 62 |
| rua Corina Freire, 11 | Active | €619,000 | €3,328 | 48.5% | 78 | 63 |
| Median comp | €559,500 | €4,667 | 27.7% | 83 | 64 |
Long-term rental Given the property’s gross yield of only 2%, the long-term rental strategy presents a challenge as the return does not justify the high purchase price of €775,000 compared to the fair value of €560,066. With the property being overpriced by 38.4%, potential cash flow may not meet investor expectations. Short-term vacation rental While the Algarve region does attract tourists that may favor short-term rentals, the current listing price reflects a gap of 38.4% from fair value, which makes this investment less appealing. The low yield of 2% suggests that even in a high-demand area, the property is overpriced for the expected income. Buy-and-hold Investing in this 3-bed apartment as a buy-and-hold strategy may not yield favorable results since the property is overpriced at €775,000 against a fair value of €560,066, with a significant gap of 38.4%. The low gross yield of 2% further indicates that holding this asset could lead to suboptimal returns over time.
Economic vulnerability With an economic stability score of 55/100, there is a significant risk of fluctuating rental income due to potential economic downturns that may affect tenant demand and occupancy rates.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
