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 100 m² on the 4th floor, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment boasts large balconies with expansive views over the sea and city, providing excellent outdoor living space and natural light throughout.
The valuation. The asking price of €370,000 sits above the fair value of €343,125, signifying a difference of €26,875 (7.8%). This property's valuation is deemed fair, but it could suggest caution for prospective investors. Buy-to-flip angle. A buy-to-flip strategy may yield profits if renovation efforts are strategically focused on enhancing the average-quality fixtures, potentially increasing resale value in a tourist-driven market. Buy-to-let angle. The property offers an estimated gross yield of 3.5%, with expected rental income around €1,079/month, making it a viable long-term rental investment given the area's tourism-related demand.
Fair value modelled at €343,125 from 6 comparable sales in the area. Asking €370,000 sits €26,875 (7.8%) above — overpriced versus fair value.
Asking €370,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €378,719 (€3,787/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 45/100 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 €378,719, adjusted for condition and micro-location, gives a modelled fair value of €343,125 (€3,431/m²), a €26,875 (7.8%) gap versus the €370,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 7880cb | Subject | €370,000 | €3,700 | — | 42 | 74 |
| Faro (Sé e São Pedro) · 937435 | Active | €266,000 | €3,500 | 5.4% | 45 | 60 |
| Faro (Sé e São Pedro) · 95706e | Active | €269,000 | €3,363 | 9.1% | 37 | 73 |
| Faro (Sé e São Pedro) · a80ac0 | Active | €315,000 | €4,200 | 13.5% | 58 | 71 |
| Faro (Sé e São Pedro) · 800356 | Active | €297,500 | €3,343 | 9.7% | 58 | 64 |
| Median comp | €283,250 | €3,432 | 7.3% | 52 | 68 |
Long-term rental With a gross yield of 3.5%, the 2-bed apartment in Faro offers stable cash flow potential, albeit it does not strike as an outstanding investment opportunity. Given its fair valuation and moderate condition score of 45/100, it may appeal to tenants but is unlikely to generate significant long-term appreciation. Short-term vacation rental The property's location in a tourist-heavy area of the Algarve positions it well for short-term vacation rentals, leveraging seasonal demand. However, with a fair valuation and competition from other short-term listings, it might not deliver exceptional returns compared to alternatives. Buy-and-hold Investing in this property as a buy-and-hold strategy could yield moderate returns due to its fair valuation, but appreciation may be hindered by its condition and relatively stagnant local economy reliant on tourism. While it serves as a sound long-term investment, potential investors should remain cautious about its growth trajectory in the current market conditions.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of fluctuations in market conditions which could affect property value and rental income; combined with a tenant stability score of 75, the reliance on stable tenants may not fully mitigate the economic uncertainties.
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