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.
3-bedroom, 2-bathroom apartment of 137 m² on the 1st floor. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Unique outdoor space: The property features an expansive 100 m² terrace with versatile potential for dining and entertainment, complemented by an 18 m² shed for additional utility.
The valuation. The asking price of €500,000 is slightly above the fair value of €493,408, representing a differential of €6,592 or 1.3%. This places the property at a fair valuation level, suggesting a balanced pricing strategy.
Fair value modelled at €493,408 from 6 comparable sales in the area. Asking €500,000 sits €6,592 (1.3%) above — overpriced versus fair value.
Asking €500,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €428,699 (€3,129/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €428,699, adjusted for condition and micro-location, gives a modelled fair value of €493,408 (€3,602/m²), a €6,592 (1.3%) gap versus the €500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 9d293b | Subject | €500,000 | €3,650 | — | 73 | 70 |
| Faro (Sé e São Pedro) · 6c7b77 | Active | €375,000 | €3,409 | 6.6% | 73 | 62 |
| Faro (Sé e São Pedro) · 4bbc2f | Active | €339,000 | €3,767 | 3.2% | 70 | 61 |
| Faro (Sé e São Pedro) · 483b96 | Active | €378,000 | €3,436 | 5.8% | 75 | 61 |
| rua José Rosário da Silva, 36 | Active | €339,000 | €3,767 | 3.2% | 73 | 64 |
| Median comp | €357,000 | €3,602 | 1.3% | 73 | 62 |
Short-term vacation rental The property’s fair valuation indicates that it is appropriately priced, making it a relatively stable investment for short-term vacation rentals in the tourism-driven Algarve region. However, with a gross yield of only 2.9%, it may not generate attractive returns compared to other potential investments in the area. Long-term rental Given its fair valuation, the property aligns with market expectations for long-term rentals in Faro, appealing to residents attracted by the local amenities. Nevertheless, the yield of 2.9% suggests that while it is a reasonable rental option, it may not maximize cash flow potential compared to other properties in the region. Buy-and-hold As the property lists at a fair price, it can be considered a stable buy-and-hold investment that captures the growing demand in the Algarve housing market. However, the economic yields suggest that appreciation over time may not be as lucrative as in other opportunities, requiring a long-term commitment to see returns. Not ideal for student housing This property is not suitable for student housing, particularly due to the limited access to top-tier schools negatively influencing tenant demand in that segment of the market. Preserving higher rental income levels may be more challenging in a neighborhood with school quality issues. Not ideal for luxury market The property does not position well within the luxury market niche, as its rating and amenities fall short of what high-end buyers typically seek. This constraint may limit its attractiveness and resale potential in a market increasingly driven by affluent buyers looking for exclusive offerings.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 65/100, there is a significant risk of fluctuations in demand that could impact rental income and investment returns negatively.
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