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 villa of 88 m², built in 2025. Located on rua Dona Teresa Ramalho Ortigão, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Unique features: This villa boasts a large private rooftop terrace ideal for entertaining and offers potential expansion opportunities, allowing for the transformation into a two-bedroom layout or a four-story building.
The valuation. The asking price of €495,000 sits €65,645 (11.7%) below the fair value of €560,645, indicating a compelling opportunity for buyers. This property is underpriced relative to its assessed worth, making it an attractive investment option.
Fair value modelled at €560,645 from 6 comparable sales in the area. Asking €495,000 sits €65,645 (11.7%) below — the upside to fair value.
Asking €495,000 versus the rua Dona Teresa Ramalho Ortigão area baseline of €514,308 (€5,844/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €514,308, adjusted for condition and micro-location, gives a modelled fair value of €560,645 (€6,371/m²), a €65,645 (11.7%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Dona Teresa Ramalho Ortigão | Subject | €495,000 | €5,625 | — | 75 | 65 |
| Faro (Sé e São Pedro) · f5ea0c | Active | €395,000 | €6,371 | 13.3% | 70 | 67 |
| rua das Olarias | Active | €395,000 | €6,371 | 13.3% | 80 | 70 |
| rua do Compromisso | Active | €355,000 | €6,455 | 14.7% | 87 | 70 |
| Faro (Sé e São Pedro) · 3df528 | Active | €450,000 | €5,625 | 0% | 75 | 52 |
| Median comp | €395,000 | €6,371 | 13.3% | 78 | 69 |
Short-term vacation rental The property in Faro offers an opportunity for short-term vacation rentals, as it is positioned in a tourist-influenced economy with a fair value gap of 11.7%. However, the 1.7% gross yield indicates that while it may be subvalued, the income potential may not fully capitalize on the area's tourist appeal. Long-term rental This villa presents a solid investment for long-term rental, particularly given its fair value assessment of €560,645 which suggests intrinsic worth. The condition rating of 78/100 implies it is well-suited for tenants, although the location's car-dependency could impact desirability. Buy-and-hold Investors looking at a buy-and-hold strategy might find this property appealing with an 11.7% deviation from its fair value, positioning it as a long-term asset. Despite the gross yield of 1.7% indicating moderate returns, the overall positive valuation signals potential appreciation over time.
Economic and Tenant Instability With both economic stability and tenant stability scores at 65/100, there is a heightened risk of fluctuations in rental income and potential vacancy, impacting overall revenue.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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