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.
2-bedroom, 2-bathroom apartment of 89 m² on the 2nd floor, energy rating C. Located Faro (Sé e São Pedro) parish, Faro municipality, Faro district. Distinctive features include two private balconies offering city views and a pantry that adds extra storage potential, despite the property's need for modernization.
The valuation. The asking price of €340,000 is slightly above the fair value of €337,706, reflecting a premium of €2,294 or 0.7%. While this is a minimal discrepancy, it aligns with a fair market evaluation. Buy-to-flip angle. A buy-to-flip strategy could capitalize on minor renovations to enhance appeal and aesthetics, aiming for a resale at a premium. Targeting a swift turnover could yield significant returns in a competitive local market. Buy-to-let angle. The estimated gross yield of 3.8%, translating to around €1,077 monthly, makes this apartment suitable for long-term rental. Given the location's mixed neighbourhood rating, stable rental income can be anticipated through strategic tenant placement.
Fair value modelled at €337,706 from 6 comparable sales in the area. Asking €340,000 sits €2,294 (0.7%) above — overpriced versus fair value.
Asking €340,000 versus the Faro (Sé e São Pedro), Faro, Faro area baseline of €350,955 (€3,943/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 52/100 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 €350,955, adjusted for condition and micro-location, gives a modelled fair value of €337,706 (€3,794/m²), a €2,294 (0.7%) gap versus the €340,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Faro (Sé e São Pedro) · 0acdbf | Subject | €340,000 | €3,820 | — | 48 | 70 |
| Faro (Sé e São Pedro) · 788091 | Active | €350,000 | €3,889 | 1.8% | 40 | 64 |
| Faro (Sé e São Pedro) · 937435 | Active | €266,000 | €3,500 | 8.4% | 45 | 60 |
| Faro (Sé e São Pedro) · 7880cb | Active | €370,000 | €3,700 | 3.1% | 42 | 74 |
| Faro (Sé e São Pedro) · 53ccb7 | Active | €250,000 | €3,968 | 3.9% | 62 | 70 |
| Median comp | €308,000 | €3,795 | 0.7% | 44 | 67 |
Long-term rental The property offers a gross yield of 3.8%, which reflects a stable return on investment in the current market. However, the condition score of 52/100 suggests potential renovation needs that may impact long-term tenant retention. Short-term vacation rental Given the proximity to Algarve's tourism hotspots, this property may generate decent seasonal income, yet the yield of 3.8% indicates that it might not fully capitalise on high tourist demand. The condition and overall appeal of the property in the vacation rental market might limit its attractiveness to more discerning visitors. Buy-and-hold Holding this property may yield stable returns due to its fair valuation and location, but the modest gap to fair value of 0.7% suggests limited potential for capital appreciation in the near term. Coupled with a medium condition score, the property may not provide the best leverage for long-term value creation. Not ideal for student housing The property is not suited for student housing due to its condition and the limited amenities available in the local area. Additionally, the overall rental yield does not justify catering specifically to this demographic. Not ideal for luxury market While this apartment is located in a reputable area, its condition score and fair valuation indicate it may not meet the expectations of luxury buyers. The neighborhood’s overall characteristics also point towards a more moderate market segment. Not ideal for industrial development This property’s zoning and location are not conducive to industrial development, particularly given the residential nature of the surrounding area. Additionally, the apartment's primary market focus does not support such a strategy.
Economic Vulnerability The property's economic stability score of 55/100 signifies a heightened risk, suggesting potential volatility in local market conditions that could affect tenant retention.
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