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.
5-bedroom, 6-bathroom penthouse of 420 m² on the 9th floor, built in 2002, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Feature: The penthouse includes a multifunctional space on the top floor, ideal for work or relaxation, complemented by two substantial storage areas for added convenience.
The valuation. The asking price of €1,799,000 is below the fair value of €2,032,509, indicating an undervaluation of €233,509 (11.5%). This property presents a favorable entry point for investors seeking value. Buy-to-flip angle. The strategy focuses on resale, taking advantage of the penthouse's prime location and high-quality finishes. Quick renovations may yield significant profits in a competitive market. Buy-to-let angle. Given the seasonal demand in Faro's Algarve region, implementing a short-term vacation rental strategy could maximize returns, despite the current 0% gross yield from long-term rental considerations.
Fair value modelled at €2,032,509 from 6 comparable sales in the area. Asking €1,799,000 sits €233,509 (11.5%) below — the upside to fair value.
Asking €1,799,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €1,713,629 (€4,080/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,713,629, adjusted for condition and micro-location, gives a modelled fair value of €2,032,509 (€4,839/m²), a €233,509 (11.5%) gap versus the €1,799,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 096f65 | Subject | €1,799,000 | €4,283 | — | 83 | 62 |
| Faro (Sé e São Pedro) · b7c2b5 | Active | €595,000 | €4,958 | 15.8% | 75 | 72 |
| avenida da Republica, 180 | Active | €1,850,000 | €5,441 | 27.0% | 80 | 73 |
| largo do Sol Posto | Active | €650,000 | €3,155 | 26.3% | 72 | 63 |
| rua Reitor Teixeira Guedes, 26 | Active | €630,000 | €3,281 | 23.4% | 70 | 70 |
| Median comp | €640,000 | €4,120 | 3.8% | 74 | 71 |
Long-term rental This 5-bed penthouse in Faro presents a potential opportunity for long-term rental due to its spacious layout of 420m², which appeals to families or larger tenants. However, with a current yield of 0% gross and a neighborhood rating of only 62/100, it may not attract enough stable long-term tenants to ensure consistent returns. Short-term vacation rental Given the strong tourism ties in the Algarve coastal region, this property is well-positioned for short-term vacation rentals, further enhanced by its size and luxury appeal. While currently not generating income, the fair value indication suggests that there is room for growth in rental pricing, aligning with the tourist demand factors in the area. Buy-and-hold Investing in this property can be justified as a long-term buy-and-hold strategy, especially considering its fair value of €2,032,509 versus the listing price of €1,799,000. The property’s sizable square footage and positive condition score of 85/100 offer a strong foundation for appreciation, even amidst a neighborhood with moderate attractiveness.
Economic Volatility Risk With an economic stability score of 55/100, the property may be vulnerable to market fluctuations that could impact rental income and property value.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
