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, 2-bathroom country_house of 217 m², built in 1978, energy rating D. Located on caminho da Boleta, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This property uniquely offers expansive agricultural land suited for diverse crops while being integrated into the urban development zone of Faro, enhancing investment potential.
The valuation. The asking price of €550,000 reflects a significant discount of €134,643 (19.7%) compared to the fair value of €684,643, illustrating that this property is subpriced. Buy-to-flip angle. The strategy focuses on enhancing the property’s appeal through minor renovations, particularly updating the vintage flooring, before reselling it to capitalize on the market demand in the Algarve. Buy-to-let angle. Aiming for a gross yield of 5.4%, the rental income strategy involves offering the property as a short-term vacation rental to leverage the region’s tourism, potentially achieving an estimated monthly income of €2,475.
Fair value modelled at €684,643 from 6 comparable sales in the area. Asking €550,000 sits €134,643 (19.7%) below — the upside to fair value.
Asking €550,000 versus the caminho da Boleta area baseline of €663,471 (€3,057/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €663,471, adjusted for condition and micro-location, gives a modelled fair value of €684,643 (€3,155/m²), a €134,643 (19.7%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho da Boleta | Subject | €550,000 | €2,535 | — | 60 | 60 |
| Conceição e Estoi · a80260 | Active | €407,000 | €3,155 | 24.5% | 55 | 65 |
| rua das Laranjeira | Active | €407,000 | €3,155 | 24.5% | 50 | 52 |
| Faro (Sé e São Pedro) · cfdf21 | Active | €426,000 | €2,420 | 4.5% | 54 | 60 |
| Conceição e Estoi · 83139d | Active | €407,000 | €3,155 | 24.5% | 45 | 60 |
| Median comp | €407,000 | €3,155 | 24.5% | 52 | 60 |
Short-term vacation rental The property in Faro, priced at €550,000, presents an attractive opportunity for short-term vacation rental investment with a significant gap of 19.7% below fair value of €684,643. Given its gross yield of 5.4%, it aligns well with the tourism-driven market of the Algarve region, making it ideal for seasonal rentals. Buy-and-hold Acquiring this 4-bed country house for €550,000 provides an advantageous long-term investment, as it is subvalued by almost €134,643 when compared to the fair market pricing of €684,643. With current economic indicators in the Algarve suggesting growth, holding this property allows for potential appreciation over time, capitalizing on the attractiveness of the location. Family rental With a fair value of €684,643 and listing at €550,000, this property is poised as a strong contender for family rentals, offering a comfortable space in a moderately rated neighborhood. This investment can benefit from the stable family demand in the area due to the appealing surroundings and amenities available in Faro, making it a solid long-term rental option.
Market Vulnerability The combined economic and tenant stability scores of 55/100 indicate a heightened risk of economic downturns affecting tenant retention and rental income. The potential instability may impact the property's cash flow and long-term appreciation.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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