Detached house in Centro, Faro
Grade B+villabudget

Detached house in Centro, Faro

Faro · Eastern Algarve ·

€650,000

Asking Price (EUR)

4.8%

True Net Yield (Owner, all-in)

3.3%

True Net Yield (Managed, all-in)

7.3%

True Gross Yield

29%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.9 months ago and is currently at 16% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.75, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €72,933/yr
Average Daily Rate: €686
Payback Period: 11.1 years
5-yr Capital Value: €854,090
10-yr Capital Value: €1.0M
Brixfox Score: 68.4 / 100
Comparable Properties: 13
Data Confidence: 66%
Search Radius: 15 km

True Investment Cost

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

€993,950

+52.9% over asking

Asking price€650,000
IMT — Property transfer tax (investment schedule)€39,000
IS — Stamp duty (0.8%)€5,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€9,750
Total acquisition costs€55,200
Renovation (est. €900/m² × 285 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€256,500
(€199,500–€313,500)
Furnishing & STR launch (6bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,250
All-in investment (incl. renovation & furnishing)€993,950

Gross yield (asking price)

11.2%

True gross yield (all-in)

7.3%

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: 6
Building: 285 m²
Style: dated
Condition: needs-renovation

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

ornate ironwork on doorred and white checkered floor

Score Breakdown

ROI
21.69
Visual Appeal
10
Ownership Security
13
Location
7.8
Land & Space
6
Rental Demand
2.91
Payback Speed
4
STR Suitability
3

Description

We present this spacious and full-of-potential apartment located on the first floor of a traditional building in the prestigious Downtown Faro. The property, designated for residential use, comprises several rooms and offers an excellent foundation for a renovation project with high return on investment. With 7 bedroo

Location

📍 37.0194°N, 7.9322°W

· Faro, Algarve, Portugal

View on JANELA IMOBILIÁRIA →Also on Idealista.pt
Idealista.pt
Faro / Eastern Algarve

Detached house in Centro, Faro

Inventory
6 Beds
Bathrooms
0 Baths
Built Area
285 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 7.6% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score68
GradeB+
Brixfox Intelligence
68B+Strong
Score Breakdown
ROI & Yield75%
Capital Growth71%
Risk Profile70%
Market Demand68%

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
+11.4%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$122K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
7.6%
$4,494/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
9 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
13.1 yr
Rental only

Property details

Condition: needs-renovation

Description

We present this spacious and full-of-potential apartment located on the first floor of a traditional building in the prestigious Downtown Faro. The property, designated for residential use, comprises several rooms and offers an excellent foundation for a renovation project with high return on investment. With 7 bedroo

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$998/night
50% ($459)Brixfox estimate($998/night)200% ($1837)
Occupancy
29%
10%Brixfox estimate(29%)100%

Short-Term Rental

Yearly income
$53,929
Airbnb data$998/night · 29% occupancy
Rental income
$998/night · 29% occ.
$106,088
Running costs (20%)
Utilities, cleaning, maintenance
-$21,218
Income tax (10%)
Indonesian rental income tax
-$29,705
Property tax
Annual property tax
-$1,236
Net income
7.6% ROI
$53,929

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$706,522
IMT (transfer tax, investment schedule)$42,391
Imposto de Selo (stamp duty)$5,652
Notary & registration$1,359
Legal / due diligence$10,598
Total acquisition costs$60,000
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$278,804
($216,848–$340,761)
Furnishing & STR launch
6bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$32,880
All-in investment$1,078,207

Gross yield (asking)

15.0%

True gross yield (all-in)

9.8%

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.

$5.1M$3.9M$2.6M$1.3M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $650K
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 12: rental income alone has repaid the full purchase price.
2x return
Year 8: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$791K
+22%
Rental Income
+$263K
Total Position
$1.1M
+62%
10.2%/yr
Year 10
Capital Value
$962K
+48%
Rental Income
+$569K
Total Position
$1.5M
+136%
8.9%/yr
Year 20
Capital Value
$1.4M
+119%
Rental Income
+$1.3M
Total Position
$2.8M
+324%
7.5%/yr
Year 30
Capital Value
$2.1M
+224%
Rental Income
+$2.4M
Total Position
$4.5M
+587%
6.6%/yr

Location

Faro

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
7.6% annual return
Occupancy
Weak
29% average occupancy
Nightly Rate
Strong
$919 per night
Visual Appeal
Weak
1/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $919 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 29% — factor in seasonal gaps

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

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
10.7%
$6,275/mo
current
40% occ.
14.3%
$8,400/mo
29% occ.
10.3%
$6,085/mo
current
39% occ.
13.9%
$8,211/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.