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, 2-bathroom apartment of 95 m² on the 3rd floor, built in 1986, energy rating C. Located on avenida 5 de Outubro, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: The apartment includes a sunroom adjacent to the kitchen, enhancing functionality and natural light, while the elevated 3rd-floor position provides pleasant views and brightness.
The valuation. The asking price of €430,000 sits significantly below the fair value of €528,649, indicating it is underpriced by €98,649 (18.7%). This discrepancy presents an attractive opportunity for savvy investors.
Fair value modelled at €528,649 from 6 comparable sales in the area. Asking €430,000 sits €98,649 (18.7%) below — the upside to fair value.
Asking €430,000 versus the avenida 5 de Outubro area baseline of €469,839 (€4,946/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €469,839, adjusted for condition and micro-location, gives a modelled fair value of €528,649 (€5,565/m²), a €98,649 (18.7%) gap versus the €430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida 5 de Outubro | Subject | €430,000 | €4,526 | — | 78 | 67 |
| avenida 5 de Outubro, 31 | Active | €450,000 | €4,737 | 4.7% | 78 | 62 |
| rua Ataide de Oliveira | Active | €408,000 | €4,976 | 9.9% | 73 | 62 |
| rua Reitor Teixeira Guedes | Active | €400,000 | €6,154 | 36.0% | 72 | 65 |
| Faro (Sé e São Pedro) · efdd5d | Active | €400,000 | €6,154 | 36.0% | 73 | 60 |
| Median comp | €404,000 | €5,565 | 22.9% | 73 | 62 |
Long-term rental This 2-bed apartment in Faro is currently listed at €430,000, presenting an attractive opportunity given its fair value of €528,649, indicating it is underpriced by 18.7%. With a gross yield of 3%, the property caters well to stable, long-term tenants looking for modern amenities in a safe and desirable neighbourhood. Short-term vacation rental With a current market listing of €430,000 versus a fair value of €528,649, this property appears to be underpriced by 18.7%, making it a compelling option for short-term rental investors. The pleasant surroundings typical of the Algarve and the apartment's decent condition can attract tourists seeking accommodation in a safe, family-friendly area. Buy-and-hold This property is listed at €430,000, significantly underpriced compared to its fair value of €528,649, which suggests it is a solid buy-and-hold investment opportunity with an 18.7% gap from fair value. The attractive location and reasonable rental yield further justify the decision to hold this asset long-term, ensuring potential capital appreciation. Not ideal for student housing Despite being underpriced, this property may not be the best fit for student housing, as its pricing and target market do not align with typical student budgets in Faro. The local area caters more to families and tourists, making it less viable for students seeking affordable rentals. Not ideal for luxury market Although the apartment is underpriced, it may not appeal to the luxury market where properties demand higher finishes and exclusivity. The condition and location suggest a mismatch with the expectations of high-end buyers looking for premium properties in Faro.
Economic Vulnerability The property has a low economic stability score of 60/100, indicating a higher risk of economic downturns affecting tenant demand and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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