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 92 m² on the 2nd floor, built in 1991, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment includes a newly installed air conditioning system and custom blackout curtains in the master bedroom for enhanced comfort and energy efficiency.**
The valuation. The asking price of €370,000 is significantly above the fair value of €311,077, representing an overpricing of €58,923 or 18.9%. This suggests that potential buyers may face challenges in achieving a solid return on investment. Buy-to-flip angle. A resale strategy could leverage the property’s desirable features and high-quality materials to attract buyers, particularly as a short-term vacation rental. However, the current asking price presents a hurdle to a profitable flip within a competitive market. Buy-to-let angle. With an estimated gross yield of 3.5%, projected rental income of €1,079 per month positions this property for steady cash flow. Value-add renovations could further enhance rental potential, appealing to long-term tenants seeking quality accommodations in the area.
Fair value modelled at €311,077 from 6 comparable sales in the area. Asking €370,000 sits €58,923 (18.9%) above — overpriced versus fair value.
Asking €370,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €261,979 (€2,848/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 €261,979, adjusted for condition and micro-location, gives a modelled fair value of €311,077 (€3,381/m²), a €58,923 (18.9%) gap versus the €370,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 38b65b | Subject | €370,000 | €4,022 | — | 78 | 57 |
| rua Doutor Olímpio Passos Valente, 13 | Active | €472,000 | €3,933 | 2.2% | 74 | 68 |
| Faro (Sé e São Pedro) · 23f4fa | Active | €432,000 | €3,108 | 22.7% | 74 | 64 |
| Faro (Sé e São Pedro) · 6c7b77 | Active | €375,000 | €3,409 | 15.2% | 73 | 62 |
| Faro (Sé e São Pedro) · 483b96 | Active | €378,000 | €3,436 | 14.6% | 75 | 61 |
| Median comp | €405,000 | €3,423 | 14.9% | 74 | 63 |
Short-term vacation rental The property is overpriced by 18.9%, resulting in limited potential for positive cash flow in the competitive vacation rental market. Given the 3.5% gross yield, this investment may not attract discerning tourists seeking better value. Buy-and-hold At a listing price of €370,000, this apartment’s valuation does not align with its fair value of €311,077, suggesting that long-term appreciation may be unlikely. The current yield of 3.5% may not meet the return expectations of buy-and-hold investors in this market segment. Value-add renovation Although there may be opportunities for value-add renovations, the property’s price is significantly above fair value by nearly 19%. The existing condition rating of 80/100 combined with a questionable neighbourhood score of 57/100 indicates that any renovation returns may be hindered by initial overpricing. Not ideal for luxury market This property does not align with typical luxury market expectations due to its current pricing and lower neighbourhood ratings. Buyers looking for premium investments will likely seek properties that offer more competitive pricing and superior amenities. Not ideal for student housing With a neighbourhood score of 57/100, this property lacks the necessary appeal and amenities to attract students effectively. The combination of high pricing and limited student housing market suggests a mismatch for educational demographics. Not ideal for long-term rental The property’s gross yield of 3.5% indicates limited profitability, making it less suitable for long-term rental strategies. Furthermore, its high asking price could deter potential long-term tenants looking for value in the market.
Economic and Tenant Instability With both economic stability and tenant stability scores at only 55/100, there is a significant risk of fluctuating rental income and potential vacancies due to market volatility.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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