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 house of 214 m², energy rating F. Located on rua Cruz das Mestras, Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This property is uniquely positioned within a historical district, encompassing multiple police numbers, offering substantial land for potential expansion or development in a prime tourist area.
The valuation. The asking price of €650,000 sits below the fair value of €701,315, indicating it is fairly priced with only a 7.3% discrepancy. This suggests a balanced opportunity without excessive markup. Buy-to-flip angle. The buy-to-flip strategy could leverage the 214m² space to enhance market appeal through value-add renovations, aiming for a quick resale. This could attract buyers seeking updated properties in the Algarve's competitive market. Buy-to-let angle. The buy-to-let strategy focuses on short-term vacation rentals, capitalizing on the area's tourism. However, with a gross yield of 0%, a significant renovation is crucial to unlock rental income potential.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Cruz das Mestras | Subject | €650,000 | €3,037 | — | — | 60 |
| largo da Praça Nova, 12 | Active | €219,000 | €2,028 | 33.2% | 37 | — |
| praceta Pintor Lyster Franco, 1 | Active | €325,000 | €3,250 | 7.0% | — | 66 |
| rua do Alportel | Active | €200,000 | €2,469 | 18.7% | — | 65 |
| Faro (Sé e São Pedro) · 2cdc22 | Active | €230,000 | — | — | — | 62 |
| Median comp | €224,500 | €2,469 | 18.7% | 37 | 65 |
Short-term vacation rental The property in Faro presents a fair valuation, with a slight gap of 7.3% below its fair value of €701,315. However, the 0% gross yield and a condition score of 0/100 indicate that it may not generate adequate short-term rental income or attract guests due to its poor condition. Buy-and-hold This 1-bed house is fairly valued at €650,000, yet the absence of yield coupled with a low condition rating suggests it may not be an ideal long-term investment. Given the neighborhood's score of 60/100, potential appreciation may be limited, impacting the overall returns on a buy-and-hold strategy. Value-add renovation Valued fairly at €650,000, this property allows for potential value-add through renovations, though its currently low condition score of 0/100 indicates significant work is needed. While the fair valuation suggests some room for enhancement, the lack of immediate income and the current condition may challenge the profitability of a renovation strategy.
Economic and Tenant Weakness: With an economic stability score of 60 and a tenant stability score of 55, there is a significant risk of fluctuating demand and potential vacancy, which could impact rental income.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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