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 enjoys a prime location with easy access to local amenities and a dedicated parking space, enhancing convenience in a bustling area near Ria Formosa.
The valuation. The asking price of €675,000 sits €162,303 (19.4%) below the fair value of €837,303, indicating the property is underpriced and presents a strong buying opportunity. Buy-to-flip angle. This property can be resold at a premium by leveraging its modern amenities and appealing condition, targeting potential buyers in the thriving Faro market. Buy-to-let angle. With an estimated gross yield of 3.1%, long-term rental strategies may generate roughly €1,744/month in passive income, capitalizing on the tourism-driven demand in the Algarve region.
Fair value modelled at €837,303 from 5 comparable sales in the area. Asking €675,000 sits €162,303 (19.4%) below — the upside to fair value.
Asking €675,000 versus the avenida 5 de Outubro area baseline of €767,774 (€5,369/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €767,774, adjusted for condition and micro-location, gives a modelled fair value of €837,303 (€5,855/m²), a €162,303 (19.4%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro | Subject | €675,000 | €4,720 | — | 75 | 71 |
| Faro (Sé e São Pedro) · 14410e | Active | €775,000 | €6,458 | 36.8% | 78 | 62 |
| rua Pintor Carlos Porfirio | Active | €890,000 | €5,855 | 24.0% | 85 | 62 |
| rua Reitor Teixeira Guedes, 26 | Active | €630,000 | €3,281 | 30.5% | 70 | 70 |
| Faro (Sé e São Pedro) · 6d5420 | Active | €890,000 | €7,008 | 48.5% | 82 | 69 |
| Median comp | €832,500 | €6,157 | 30.4% | 80 | 66 |
Short-term vacation rental The property’s location in Faro, a highly sought-after tourist destination, positions it well for short-term vacation rentals, capitalizing on the area’s significant visitor inflow. With a gross yield of 3.1% and a fair value indicator suggesting an underpricing of 19.4%, there is substantial potential for rental income growth. Long-term rental The apartment's condition rating of 79/100, combined with a neighborhood quality score of 71/100, supports its attractiveness for long-term rental opportunities. As the property is underpriced compared to its fair market value, it can yield more competitive rental rates and stable returns over time. Buy-and-hold Investing in this property as a buy-and-hold strategy is appealing, given the 19.4% gap compared to fair value, indicating potential appreciation. The favorable condition and neighborhood ratings further enhance its long-term investment viability in a tourism-driven market.
Economic Fluctuation Risk The economic stability score of 65/100 indicates potential vulnerability to economic downturns, which could affect tenant retention and rental income.
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