Detached house in Centro, Faro
Detached house in Centro, Faro — image 2Detached house in Centro, Faro — image 3Detached house in Centro, Faro — image 4Detached house in Centro, Faro — image 5
Grade C+villabudget

Detached house in Centro, Faro

Faro · Eastern Algarve ·

€500,000

Asking Price (EUR)

1.3%

True Net Yield (Owner, all-in)

0.7%

True Net Yield (Managed, all-in)

2.0%

True Gross Yield

38%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.2 months ago and is currently at 19% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.76, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €25,937/yr
Average Daily Rate: €188
-28.0% vs area baselineImage quality 4/10 (-9%), Portuguese-traditional style (+5%), No pool (-12%), Budget finish (-12%)
Payback Period: 64.9 years
5-yr Capital Value: €579,637
10-yr Capital Value: €671,958
Brixfox Score: 50.9 / 100
Comparable Properties: 15
Data Confidence: 87%
Search Radius: 2 km

True Investment Cost

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

€1.3M

+153.3% over asking

Asking price€500,000
IMT — Property transfer tax (investment schedule)€27,830
IS — Stamp duty (0.8%)€4,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€7,500
Total acquisition costs€40,580
Renovation (est. €900/m² × 782 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€703,800
(€547,400–€860,200)
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)€1.3M

Gross yield (asking price)

5.2%

True gross yield (all-in)

2.0%

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: 3
Bathrooms: 1
Building: 782 m²
Land: 583 m²
Style: portuguese-traditional
Condition: needs-renovation
Year Built: 1986
Energy Certificate: Exempt

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

cobblestone streettraditional street lampssmall balcony

Score Breakdown

ROI
6.16
Visual Appeal
7.2
Ownership Security
13
Location
7.8
Land & Space
8.99
Rental Demand
3.77
Payback Speed
0
STR Suitability
4

Description

An excellent opportunity in the heart of Faro’s historic area! Located in the emblematic Old Town, one of the most exclusive, authentic, and sought-after areas of the region. This is a two-bedroom house with high appreciation potential, ideal for renovation, allowing the creation of a unique and personalized project.

Location

📍 37.0130°N, 7.9365°W

· Faro, Algarve, Portugal

View on Sortami - Mediação Imobiliária, Lda. →Also on Idealista.pt
Detached house in Centro, Faro
Idealista.pt
Source verified

Detached house in Centro, Faro

Faro · Eastern Algarve · Freehold · Ref BF-2353
Ownership
Freehold
Bedrooms
3
Bathrooms
1
Built area
782 m²
Land
583 m²
True net yield
1.5%
≈ $1,814/mo net after costs & tax
Brixfox Score 51 · C+

Property details

Year built: 1986
Energy: Exempt
Condition: needs-renovation

Description

An excellent opportunity in the heart of Faro’s historic area! Located in the emblematic Old Town, one of the most exclusive, authentic, and sought-after areas of the region. This is a two-bedroom house with high appreciation potential, ideal for renovation, allowing the creation of a unique and personalized project.

Income Breakdown

Figures are modelled estimates derived from comparable short-term-rental data — not guaranteed returns or financial advice. Do your own due diligence before investing.

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$271/night
50% ($125)Brixfox estimate($271/night)200% ($498)
Occupancy
38%
10%Brixfox estimate(38%)100%

Short-Term Rental

Yearly income
$17,964
Airbnb data$271/night · 38% occupancy
Rental income
$271/night · 38% occ.
$34,547
Running costs (20%)
Utilities, cleaning, maintenance
-$6,909
Income tax (10%)
Indonesian rental income tax
-$9,673
Property tax
Annual property tax
-$0
Net income
3.3% ROI
$17,964

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

Airbnb Comp Analysis

No nearby Airbnb listings found

Investment Returns

After-tax net yield · all-in cost basis

Exact location

Net Yield · Fully-Managed · After Tax

1.5%

on all-in cost of $624,620

Scenario
Pre-tax
After-tax
Owner-managed
3.5%
3.0%
Fully-managed
2.0%
1.5%
After-tax nets ~28% non-resident IRS on AL income (simplified regime). Yields are on the all-in acquisition cost, not the asking price.

Gross Yield

5.5%

Annual Revenue

$34,547

Income Tax / yr

$3,023

Payback

65 yrs

True All-In Cost
Asking price$543,478
IMT — transfer tax (non-resident 7.5%)$40,761
Stamp duty (0.8%)$4,348
Notary + registry$2,174
Legal$6,685
Furnishing + STR launch$27,174
All-in cost$624,620

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Faro.

$2.8M$2.1M$1.4M$692K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $500K
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
$608K
+22%
Rental Income
+$88K
Total Position
$696K
+39%
6.8%/yr
Year 10
Capital Value
$740K
+48%
Rental Income
+$189K
Total Position
$930K
+86%
6.4%/yr
Year 20
Capital Value
$1.1M
+119%
Rental Income
+$444K
Total Position
$1.5M
+208%
5.8%/yr
Year 30
Capital Value
$1.6M
+224%
Rental Income
+$786K
Total Position
$2.4M
+382%
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
38% average occupancy
Nightly Rate
Strong
$249 per night
Visual Appeal
Average
5/10 instagrammability
Size & Space
Strong
583 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $249 — positioned in the top tier
Generous 583 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.
3.8%
$1,730/mo
40% occ.
5.1%
$2,307/mo
38% occ.
4.8%
$2,176/mo
current
48% occ.
6.1%
$2,753/mo

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Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Market factors in Portugal may impact actual yields.

Asking price · Freehold
$543,478
1.5%
Net yield
View original listing
Source verified · Idealista.pt · listed 2 Jun 2026
Estimates, not financial advice. Yields modelled from real Airbnb data.