T6 flat in Centro, Faro
T6 flat in Centro, Faro — image 2T6 flat in Centro, Faro — image 3T6 flat in Centro, Faro — image 4T6 flat in Centro, Faro — image 5
Grade B+apartmentbudget

T6 flat in Centro, Faro

Faro · Eastern Algarve ·

€650,000

Asking Price (EUR)

5.9%

True Net Yield (Owner, all-in)

4.1%

True Net Yield (Managed, all-in)

9.0%

True Gross Yield

45%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.9 months ago and is currently at 15% 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: €89,717/yr
Average Daily Rate: €548
-48.0% vs area baselineImage quality 4/10 (-9%), Dated style (-15%), No pool (-12%), Budget finish (-12%)
Payback Period: 9.0 years
5-yr Capital Value: €854,090
10-yr Capital Value: €1.0M
Brixfox Score: 68.2 / 100
Comparable Properties: 4
Data Confidence: 55%
Search Radius: 10 km

True Investment Cost

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

€991,950

+52.6% 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.		€30,250
All-in investment (incl. renovation & furnishing)€991,950

Gross yield (asking price)

13.8%

True gross yield (all-in)

9.0%

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
Bathrooms: 2
Building: 285 m²
Style: dated
Condition: needs-renovation
Year Built: 1940
Energy Certificate: F

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

patterned-floor-tileswooden-doors

Score Breakdown

ROI
24.5
Visual Appeal
5.4
Ownership Security
13
Location
7.8
Land & Space
6
Rental Demand
4.48
Payback Speed
4
STR Suitability
3

Description

6-bedroom apartment in need of renovation in downtown Faro. Total area of 275m2. Comprising 2 floors: 1st floor with 4 bedrooms, 2 living rooms, 2 storage rooms, kitchen, pantry, 2 bathrooms, and balcony; 2nd floor with 2 bedrooms. Located in a century-old building. Ideal for a hostel, clinic, etc.

Location

📍 37.0189°N, 7.9343°W

· Faro, Algarve, Portugal

View on VILAFARUS - MEDIAÇÃO IMOBILIÁRIA, LDA →Also on Idealista.pt
Idealista.pt
Faro / Eastern Algarve

T6 flat in Centro, Faro

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

Grade B+ investment — short-term rental yields 9.4% net return annually.

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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.

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Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+13.2%
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
9.4%
$5,558/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
8 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
10.6 yr
Rental only

Property details

Year built: 1940
Energy: F
Condition: needs-renovation

Description

6-bedroom apartment in need of renovation in downtown Faro. Total area of 275m2. Comprising 2 floors: 1st floor with 4 bedrooms, 2 living rooms, 2 storage rooms, kitchen, pantry, 2 bathrooms, and balcony; 2nd floor with 2 bedrooms. Located in a century-old building. Ideal for a hostel, clinic, etc.

Income Breakdown

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Nightly Rate (ADR)
$799/night
50% ($367)Brixfox estimate($799/night)200% ($1469)
Occupancy
45%
10%Brixfox estimate(45%)100%

Short-Term Rental

Yearly income
$66,691
Airbnb data$799/night · 45% occupancy
Rental income
$799/night · 45% occ.
$130,629
Running costs (20%)
Utilities, cleaning, maintenance
-$26,126
Income tax (10%)
Indonesian rental income tax
-$36,576
Property tax
Annual property tax
-$1,236
Net income
9.4% ROI
$66,691

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)

18.5%

True gross yield (all-in)

12.1%

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.

$5.8M$4.3M$2.9M$1.4M$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 10: rental income alone has repaid the full purchase price.
2x return
Year 7: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$791K
+22%
Rental Income
+$326K
Total Position
$1.1M
+72%
11.4%/yr
Year 10
Capital Value
$962K
+48%
Rental Income
+$703K
Total Position
$1.7M
+156%
9.9%/yr
Year 20
Capital Value
$1.4M
+119%
Rental Income
+$1.6M
Total Position
$3.1M
+373%
8.1%/yr
Year 30
Capital Value
$2.1M
+224%
Rental Income
+$2.9M
Total Position
$5.0M
+673%
7.1%/yr

Location

Faro

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
9.4% annual return
Occupancy
Weak
45% average occupancy
Nightly Rate
Strong
$735 per night
Visual Appeal
Weak
2/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 9.4% — outperforms most villas in this market
Premium nightly rate of $735 — 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 45% — 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.
8.5%
$4,998/mo
40% occ.
11.4%
$6,698/mo
45% occ.
12.8%
$7,517/mo
current
55% occ.
15.7%
$9,218/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.