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, built in 2002, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This penthouse includes a private garage with EV charging capabilities and multiple terraces that offer unobstructed views over the Ria Formosa, enhancing outdoor living. Property Type: 5-bed 6-bath penthouse, 420m², energy C, Faro (Sé e São Pedro), Faro
The valuation. The asking price of €1,650,000 is 3.9% above the fair value of €1,588,563, indicating that the property is fairly priced in the current market. Buy-to-flip angle. With an expected short-term renovation and strategic marketing, there is potential to resell at a premium in this desirable location. Buy-to-let angle. The penthouse's prime position in Faro suggests strong demand for seasonal rentals, offering opportunities to capitalize on tourist influx with a solid buy-and-hold approach.
Fair value modelled at €1,588,563 from 6 comparable sales in the area. Asking €1,650,000 sits €61,438 (3.9%) above — overpriced versus fair value.
Asking €1,650,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €1,339,739 (€3,190/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 €1,339,739, adjusted for condition and micro-location, gives a modelled fair value of €1,588,563 (€3,782/m²), a €61,438 (3.9%) gap versus the €1,650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 76abbc | Subject | €1,650,000 | €3,929 | — | 78 | 64 |
| Faro (Sé e São Pedro) · 096f65 | Active | €1,799,000 | €4,283 | 9.0% | 83 | 62 |
| Faro (Sé e São Pedro) · b7c2b5 | Active | €595,000 | €4,958 | 26.2% | 75 | 72 |
| largo do Sol Posto | Active | €650,000 | €3,155 | 19.7% | 72 | 63 |
| rua Reitor Teixeira Guedes, 26 | Active | €630,000 | €3,281 | 16.5% | 70 | 70 |
| Median comp | €640,000 | €3,782 | 3.7% | 74 | 67 |
Short-term vacation rental The market for short-term vacation rentals in Faro benefits from the Algarve's strong tourism influence, making it a viable option despite the lack of gross yield. However, the property price is only fair against its fair value, limiting the potential for significant profit in this high-competition segment. Long-term rental With a fair pricing structure and a decent condition rating, this property could serve well for long-term rental in a region characterized by seasonal employment. Yet, the yield remains at 0%, which poses challenges in covering the carrying costs effectively. Buy-and-hold Investing in this penthouse for a buy-and-hold strategy is reasonable considering its fair value alignment, though growth potential may be modest due to the stagnant rental yield. The property is located in a neighborhood that is not ideal for luxury market dynamics, suggesting limited appreciation prospects in the near term.
Economic Vulnerability The economic stability score of 55/100 indicates a significant risk of downturns that could affect property demand and 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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