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 75 m², built in 1991, energy rating D. Located on estrada de São Luís, 164, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment features a convenient ground-floor location with easy access to an elevator and is equipped with a modern video intercom system for enhanced security.
The valuation. The asking price of €299,000 sits €33,570 (12.6%) above the fair value of €265,430, indicating that the property is overpriced. This discrepancy suggests a lack of alignment with current market conditions in the Faro area. Buy-to-flip angle. A potential buy-and-flip strategy may capitalize on cosmetic upgrades, particularly in the kitchen and bathrooms, to enhance appeal and command a higher resale price. Given the current condition, targeted renovations could lead to a profitable turnover. Buy-to-let angle. With an estimated gross yield of 3.9% (€972/month), the property presents a modest investment return as a long-term rental. However, ongoing maintenance and the need for updates may affect overall profitability in the competitive rental market.
Fair value modelled at €265,430 from 6 comparable sales in the area. Asking €299,000 sits €33,570 (12.6%) above — overpriced versus fair value.
Asking €299,000 versus the estrada de São Luís, 164 area baseline of €246,479 (€3,286/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 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 €246,479, adjusted for condition and micro-location, gives a modelled fair value of €265,430 (€3,539/m²), a €33,570 (12.6%) gap versus the €299,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de São Luís, 164 | Subject | €299,000 | €3,987 | — | 72 | 62 |
| Faro (Sé e São Pedro) · b7c221 | Active | €340,000 | €3,542 | 11.2% | 76 | 65 |
| Faro (Sé e São Pedro) · dc149b | Active | €340,000 | €3,542 | 11.2% | 65 | 62 |
| Faro (Sé e São Pedro) · 8313a0 | Active | €339,500 | €3,536 | 11.3% | 75 | 73 |
| Faro (Sé e São Pedro) · b7c1fb | Active | €295,000 | €3,172 | 20.4% | 68 | 65 |
| Median comp | €339,750 | €3,539 | 11.2% | 72 | 65 |
Short-term vacation rental While short-term vacation rentals near the Algarve coast can generate substantial income, this property is overpriced at €299,000, presenting a significant gap of 12.6% above its fair value. The current yield of 3.9% is not attractive enough to justify the investment, given the higher costs and competitive market conditions. Buy-and-hold Investing in a buy-and-hold strategy for this apartment presents challenges due to its pricing, which is considerably above the fair value of €265,430. The potential for capital appreciation in a tourism-driven market is undermined by the current valuation, rendering it a less favorable long-term investment. Long-term rental Acquiring this property for long-term rental purposes appears risky, as the asking price of €299,000 exceeds the calculated fair value by 12.6%. With a gross yield of only 3.9%, this property does not meet the required performance metrics for attractive passive income in a stable rental market.
Economic Vulnerability The property faces a potential risk due to its economic stability score of 55/100, indicating possible fluctuations in local market conditions that could affect tenant demand and rental income.
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