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 109 m², built in 1988, energy rating D. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Noteworthy Features: This apartment boasts a decorative marble staircase with intricate mosaic tiles, adding a unique aesthetic appeal beyond its functional layout.
The valuation. The asking price of €298,000 is notably below the fair value of €333,766, making it subvalued by €35,766 (10.7%). This indicates a sound investment opportunity as the property is priced attractively against its true market worth.
Fair value modelled at €333,766 from 6 comparable sales in the area. Asking €298,000 sits €35,766 (10.7%) below — the upside to fair value.
Asking €298,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €323,459 (€2,968/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €323,459, adjusted for condition and micro-location, gives a modelled fair value of €333,766 (€3,062/m²), a €35,766 (10.7%) gap versus the €298,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 0ac77c | Subject | €298,000 | €2,734 | — | 56 | 71 |
| Faro (Sé e São Pedro) · 6229e8 | Active | €299,000 | €3,082 | 12.7% | 65 | 73 |
| Faro (Sé e São Pedro) · 5da0e8 | Active | €365,000 | €3,042 | 11.3% | — | 63 |
| rua Engenheiro Adelino Amaro da Costa, 7 | Active | €338,000 | €3,159 | 15.5% | 65 | 71 |
| Faro (Sé e São Pedro) · 0dd008 | Active | €295,000 | €2,837 | 3.8% | 72 | 58 |
| Median comp | €318,500 | €3,062 | 12.0% | 65 | 67 |
Short-term vacation rental This 3-bed apartment in Faro is ideally positioned for short-term vacation rentals, given its proximity to Algarve's tourism hotspots. The property is currently listed at €298,000, which is distinctly underpriced compared to its fair value of €333,766, providing an attractive 5.2% gross yield for investors. Buy-and-hold Investing in this 3-bed apartment as a buy-and-hold strategy is compelling due to its favorable fair value positioning and the robust tourism-driven tenant market in the area. With a fair value gap of 10.7%, purchasing at the listing price enhances the potential for long-term appreciation, particularly given its healthy yield. Long-term rental With a solid gross yield of 5.2%, this property serves as a good option for long-term rental investments, likely ensuring stable tenant occupancy in a neighborhood that benefits from tourism. The fair value of the apartment supports its potential as a reliable income-generating asset over time, enhancing the investor's returns despite the higher condition rating of 62/100. Student housing This property is not suitable for student housing as the immediate rental market is more aligned with tourism, which provides greater demand stability. The evaluation of location amenities and tenant quality suggests that focusing on short-term and long-term rentals aligns better with market demands. Value-add renovation The property does not present an appropriate opportunity for value-add renovation given its current condition rating of 62/100, which limits potential upside. Additionally, investing in renovation would be less attractive considering the location's primary appeal lies in its tourism-driven stable market rather than extensive property improvements.
Economic Volatility Risk The property may face challenges due to the economic stability score of 68/100, indicating a potential for fluctuating market conditions that could impact rental income. Tenant Turnover Risk With a tenant stability score of 70/100, there may be a moderate risk of tenant turnover affecting consistent cash flow.
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
