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 65 m² on the 1st floor, built in 1970, energy rating C. Located on rua Reitor Teixeira Guedes, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. This apartment features a new security door for enhanced safety and white aluminum windows to improve thermal insulation and brightness throughout the living spaces.
The valuation. The asking price of €400,000 is significantly higher than the fair value of €323,415, creating a discrepancy of €76,585 (23.7%). This property is considered overpriced in the current market.
Fair value modelled at €323,415 from 5 comparable sales in the area. Asking €400,000 sits €76,585 (23.7%) above — overpriced versus fair value.
Asking €400,000 versus the rua Reitor Teixeira Guedes area baseline of €297,069 (€4,570/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €297,069, adjusted for condition and micro-location, gives a modelled fair value of €323,415 (€4,976/m²), a €76,585 (23.7%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Reitor Teixeira Guedes | Subject | €400,000 | €6,154 | — | 72 | 65 |
| rua Ataide de Oliveira | Active | €408,000 | €4,976 | 19.1% | 73 | 62 |
| Faro (Sé e São Pedro) · cc9950 | Active | €345,000 | €6,389 | 3.8% | 74 | 67 |
| avenida 5 de Outubro | Active | €280,000 | €5,600 | 9.0% | 75 | 73 |
| rua Ataide de Oliveira S / N | Active | €307,000 | €4,873 | 20.8% | 85 | 72 |
| Median comp | €326,000 | €5,288 | 14.1% | 75 | 70 |
Long-term rental The 2-bed apartment in Faro, priced at €400,000, exceeds the fair value by 23.7%, suggesting it is overpriced for a long-term rental strategy. With a gross yield of only 2.7%, the financial return may not justify the elevated purchase price and associated carrying costs. Short-term vacation rental Although the apartment is situated in the tourism-centric Algarve region, its listing price is 23.7% above the fair value, signaling that it is overpriced for a short-term vacation rental investment. The expected yield of 2.7% does not adequately compensate for this pricing premium, especially given the property's condition rating of 76/100. Buy-and-hold In the context of a buy-and-hold investment strategy, the apartment's price of €400,000 is still too high relative to the fair value, making it overpriced by 23.7%. As such, the potential for appreciation or rental income may not make this a compelling long-term investment given the modest yield of 2.7% and the current market conditions.
Economic Vulnerability With an economic stability score of 60/100, the property is at risk of fluctuating market conditions that could adversely affect rental income and property value.
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