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.
4-bedroom, 3-bathroom apartment of 143 m² on the 6th floor, energy rating B. Located on avenida 5 de Outubro, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment boasts panoramic views of Ria Formosa from every bedroom, enhancing its spacious and modern design with an abundance of natural light throughout the day.
The valuation. The asking price of €675,000 is significantly below the fair value of €773,172, presenting a discount of €98,172 (12.7%). This indicates that the property is underpriced relative to its market value.
Fair value modelled at €773,172 from 6 comparable sales in the area. Asking €675,000 sits €98,172 (12.7%) below — the upside to fair value.
Asking €675,000 versus the avenida 5 de Outubro area baseline of €708,621 (€4,955/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €708,621, adjusted for condition and micro-location, gives a modelled fair value of €773,172 (€5,407/m²), a €98,172 (12.7%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro | Subject | €675,000 | €4,720 | — | 80 | 64 |
| Faro (Sé e São Pedro) · 14410e | Active | €775,000 | €6,458 | 36.8% | 78 | 62 |
| rua Reitor Teixeira Guedes, 26 | Active | €630,000 | €3,281 | 30.5% | 70 | 70 |
| rua Pintor Carlos Porfirio | Active | €890,000 | €5,855 | 24.0% | 85 | 62 |
| Faro (Sé e São Pedro) · 6d54cd | Active | €650,000 | €4,643 | 1.6% | 60 | 59 |
| Median comp | €712,500 | €5,249 | 11.2% | 74 | 62 |
Long-term rental The 4-bed apartment in Faro presents a strong candidate for a long-term rental strategy, with a fair value of €773,172 indicating a 12.7% gap that supports its potential for appreciation. This property offers a gross yield of 3.1%, aligning with the typical demand for rental properties in a tourist-driven housing market. Short-term vacation rental Given Faro's tourist appeal, this property stands to benefit from a short-term vacation rental strategy, as it is well-positioned to attract seasonal visitors. The current listing price allows for competitive pricing in the market, potentially leading to strong occupancy rates and revenue growth. Buy-and-hold The 4-bed apartment represents an attractive buy-and-hold investment opportunity, considering its fair value suggests future appreciation potential in the Algarve’s evolving housing market. The blend of a solid yield and positive market dynamics supports a long-term investment strategy aimed at capitalizing on expected growth in property value. Not ideal for luxury market This property may not meet the criteria for luxury market investments, as its condition rating of 77/100 suggests it may require updates to compete effectively in that segment. The combination of neighborhood ratings indicates that this property targets a different demographic than the high-end luxury sector. Not ideal for student housing The housing market's dynamics and the tenant quality in the neighborhood suggest that this property is not suited for the student housing segment. The location's appeal is more aligned with tourists rather than long-term student rentals, limiting its viability in this category.
Tenant Default Risk With a tenant stability score of 55/100, there is a heightened likelihood of tenant turnover or default, potentially leading to increased vacancy periods and associated costs.
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