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.
1-bedroom, 1-bathroom apartment of 48 m², built in 1988, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment boasts two facades allowing for increased natural light, and is strategically located less than 200 meters from essential public services like the Health Center and school.
The valuation. The asking price of €220,000 is below the fair value of €233,712, indicating that the property is priced fairly with a difference of €13,712 (5.9%). Buy-to-flip angle. A potential resale strategy involves cosmetic updates to elevate the apartment's appeal, targeting a quick exit for profit in this tourist-frequented area. Buy-to-let angle. Capitalizing on a gross yield of 6%, this property could generate an estimated rental income of €1,100 per month, appealing to both short-term vacation and long-term rental markets.
Fair value modelled at €233,712 from 6 comparable sales in the area. Asking €220,000 sits €13,712 (5.9%) below — the upside to fair value.
Asking €220,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €238,777 (€4,975/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 is below the parish average, reducing 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 €238,777, adjusted for condition and micro-location, gives a modelled fair value of €233,712 (€4,869/m²), a €13,712 (5.9%) gap versus the €220,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · f10ae4 | Subject | €220,000 | €4,583 | — | 55 | 63 |
| Faro (Sé e São Pedro) · 3a7477 | Active | €259,000 | €5,078 | 10.8% | 62 | 56 |
| rua Manuel Ascensao | Active | €219,000 | €4,660 | 1.7% | 49 | 67 |
| Faro (Sé e São Pedro) · 28bac4 | Active | €290,000 | €5,577 | 21.7% | 70 | 60 |
| Faro (Sé e São Pedro) · 6d54b2 | Active | €285,000 | €5,588 | 21.9% | 60 | 61 |
| Median comp | €272,000 | €5,328 | 16.2% | 61 | 61 |
Short-term vacation rental This 1-bed apartment in Faro is well-positioned to capitalize on the Algarve's booming tourism market, making it suitable for short-term vacation rentals with a projected yield of 6%. However, considering its fair value of €233,712, the property is priced at €220,000, indicating a modest potential for appreciation. Long-term rental Offering a gross yield of 6%, this apartment can serve the long-term rental market effectively, appealing to local residents despite its moderate neighborhood rating of 63/100. The fair valuation indicates adequate pricing for stability, as it stands at €220,000 against a fair value of €233,712. Buy-and-hold As a buy-and-hold investment, the property's decent yield and established demand in Faro's housing market suggest a stable income stream. Priced at €220,000, it aligns closely with its fair value of €233,712, indicating that it is currently neither an aggressive entry point nor a strong speculative opportunity. Not ideal for luxury market Given the apartment's condition rating of 55/100 and the fair value context, it does not align with the expectations of the luxury housing segment in Faro. Investors looking to penetrate the high-end market would likely find this property unsuitable. Not ideal for student housing The lack of premium schooling options in the vicinity suggests that this unit may not attract a substantial student population, impairing its prospects in the student housing market. Thus, investing in this property for that purpose may not yield anticipated benefits.
Economic Volatility Risk: With an economic stability score of 60/100, there is a potential risk of economic fluctuations negatively impacting property values and tenant demand.
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