Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro
Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro — image 2Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro — image 3Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro — image 4Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro — image 5
Grade Bvillabudget

Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro

Faro · Eastern Algarve ·

€320,000

Asking Price (EUR)

1.6%

True Net Yield (Owner, all-in)

1.1%

True Net Yield (Managed, all-in)

2.4%

True Gross Yield

42%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.5 months ago and is currently at 13% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €15,904/yr
Average Daily Rate: €103
-54.0% vs area baselineImage quality 2/10 (-15%), Dated style (-15%), No pool (-12%), Budget finish (-12%)
Payback Period: 24.7 years
5-yr Capital Value: €420,475
10-yr Capital Value: €511,572
Brixfox Score: 57.3 / 100
Comparable Properties: 12
Data Confidence: 71%
Search Radius: 3 km

True Investment Cost

Portuguese transfer tax (IMT) + stamp duty (IS) + notary + registration + legal + renovation + full furnishing & STR launch setup.

€663,940

+107.5% over asking

Asking price€320,000
IMT — Property transfer tax (investment schedule)€13,430
IS — Stamp duty (0.8%)€2,560
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€4,800
Total acquisition costs€22,040
Renovation (est. €900/m² × 333 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€299,700
(€233,100–€366,300)
Furnishing & STR launch (3bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€22,200
All-in investment (incl. renovation & furnishing)€663,940

Gross yield (asking price)

5.0%

True gross yield (all-in)

2.4%

Estimates use Portugal's investment IMT schedule (non-permanent residence). Actual notary & legal vary; budget +€500–1,000 for surveyor, due-diligence and bank-mortgage fees if financing. Renovation cost is a heuristic on property condition × m² — verify with a site visit. Furnishing uses finish-level-tiered rates covering beds, living, kitchen, electronics, AL licence, linens & professional photography. Working capital (2-3 months operating buffer) not included.

Bedrooms: 3
Bathrooms: 1
Building: 333 m²
Land: 19147 m²
Style: dated
Condition: needs-renovation
Year Built: 1951
Energy Certificate: Exempt

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
14.02
Visual Appeal
2.2
Ownership Security
13
Location
7.8
Land & Space
12
Rental Demand
4.24
Payback Speed
1
STR Suitability
3

Description

This magnificent property, located at the entrance to the city of Faro, consists of a flat plot of 19,147m2 and a villa to rehabilitate, it has great potential for development, whether for residential, agricultural or tourist purposes. The location is privileged, it is 2 minutes from the city center of Faro as well as

Location

📍 37.0271°N, 7.9015°W

· Faro, Algarve, Portugal

View on Idealista.pt
Idealista.pt
Faro / Eastern Algarve

Detached house, N125, 2, Areal Gordo - Rio Seco - Ilha da Culatra, Faro

Inventory
3 Beds
Bathrooms
1 Baths
Built Area
333 m²
Land Plot
19147 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 3.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score57
GradeB
Brixfox Intelligence
57BStrong
Score Breakdown
ROI & Yield63%
Capital Growth60%
Risk Profile59%
Market Demand57%

The Brixfox Score is our proprietary AI-powered rating that evaluates rental ROI, capital appreciation potential, risk factors, and local market dynamics to give you a single investment quality metric.

Pro members get full score breakdown with AI recommendations
Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+7.1%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$60K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.3%
$964/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
13 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
30.1 yr
Rental only

Property details

Year built: 1951
Energy: Exempt
Condition: needs-renovation

Description

This magnificent property, located at the entrance to the city of Faro, consists of a flat plot of 19,147m2 and a villa to rehabilitate, it has great potential for development, whether for residential, agricultural or tourist purposes. The location is privileged, it is 2 minutes from the city center of Faro as well as

Income Breakdown

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Nightly Rate (ADR)
$151/night
50% ($70)Brixfox estimate($151/night)200% ($278)
Occupancy
42%
10%Brixfox estimate(42%)100%

Short-Term Rental

Yearly income
$11,569
Airbnb data$151/night · 42% occupancy
Rental income
$151/night · 42% occ.
$23,418
Running costs (20%)
Utilities, cleaning, maintenance
-$4,684
Income tax (10%)
Indonesian rental income tax
-$6,557
Property tax
Annual property tax
-$609
Net income
3.3% ROI
$11,569

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

True all-in investment

What the headline asking price actually costs once mandatory taxes, fees, renovation, and furnishing are added. Yields rebased onto this number — closer to what you'll really earn against what you'll really pay.

Asking price$347,826
IMT (transfer tax, investment schedule)$14,598
Imposto de Selo (stamp duty)$2,783
Notary & registration$1,359
Legal / due diligence$5,217
Total acquisition costs$23,957
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$325,761
($253,370–$398,152)
Furnishing & STR launch
3bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$21,957
All-in investment$719,500

Gross yield (asking)

6.7%

True gross yield (all-in)

3.3%

Estimates use Portugal's standard transfer tax + typical legal/notary defaults. Verify with local counsel before committing — actual fees vary by deal structure.

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Faro.

$1.8M$1.3M$888K$444K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $320K
Capital appreciation
Property value growing at +4%/yr based on Faro market trends.
Rental income
Cumulative net rental earnings collected over time, growing with annual revenue increases.
Total return
Capital value + rental income. Your actual total position if you sold and kept all rent.
Paid back
Year 22: rental income alone has repaid the full purchase price.
2x return
Year 12: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$389K
+22%
Rental Income
+$57K
Total Position
$446K
+39%
6.9%/yr
Year 10
Capital Value
$474K
+48%
Rental Income
+$122K
Total Position
$596K
+86%
6.4%/yr
Year 20
Capital Value
$701K
+119%
Rental Income
+$286K
Total Position
$987K
+208%
5.8%/yr
Year 30
Capital Value
$1.0M
+224%
Rental Income
+$506K
Total Position
$1.5M
+383%
5.4%/yr

Location

Faro

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
3.3% annual return
Occupancy
Weak
42% average occupancy
Nightly Rate
Good
$139 per night
Visual Appeal
Weak
1/10 instagrammability
Size & Space
Strong
19147 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Generous 19147 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 3.3% is near the market average — model your cashflow carefully

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
3.2%
$915/mo
40% occ.
4.3%
$1,237/mo
42% occ.
4.5%
$1,315/mo
current
52% occ.
5.6%
$1,637/mo

Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Includes 10% Indonesian rental tax (PPh) and annual property tax (PBB). Market factors in Portugal may impact actual yields.