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.
4-bedroom, 4-bathroom villa of 270 m², energy rating C. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The villa boasts a sunken living room that enhances its spaciousness while featuring a wood-burning fireplace, perfectly blending comfort with contemporary elegance.
The valuation. The asking price of €1,299,000 is significantly above the fair value of €328,670, representing a staggering €970,330 overvaluation (74.7%). This property is classified as overpriced in the current market. Buy-to-flip angle. With strategic renovations, this villa could be resold for a profit, capitalizing on its high-quality finishes and desirable location. A well-executed flip strategy could attract buyers willing to pay a premium in the Algarve. Buy-to-let angle. The estimated rental income of €4,980 per month yields approximately 4.6%, potentially appealing to long-term tenants or tourists. The villa's location in a tourist zone enhances its attractiveness for vacation rentals, ensuring consistent income.
Fair value modelled at €871,538 from the area baseline, adjusted for condition and location. Asking €1,299,000 sits €427,462 (32.9%) above — overpriced versus fair value.
Asking €1,299,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €772,740 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 78 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Estômbar e Parchal, Lagoa, Faro
Area baseline €772,740 + condition +€30,797 + location +€68,001 = modelled fair value of €871,538 (€3,228/m²), a €427,462 (32.9%) gap versus the €1,299,000 asking price.
Long-term rental The property is significantly overpriced at €1,299,000 compared to its fair value of €328,670, creating a substantial 74.7% gap. Given the competitive rental market in the Algarve, this investment would yield a lackluster 4.6% gross return, likely deterring long-term tenants. Short-term vacation rental At a listing price of €1,299,000, the villa falls short of being a compelling investment, especially as it is overpriced against the fair value of €328,670. The low yield of 4.6% gross further diminishes its attractiveness in the thriving short-term rental market of the Algarve. Buy-and-hold Considering the property’s price point of €1,299,000 versus the fair valuation of €328,670, it is clear that this asset is overpriced by 74.7%. This substantial gap, coupled with a modest gross yield of 4.6%, suggests that holding this investment long-term may not yield the desired financial returns. Not ideal for Student housing, Luxury market, Industrial investment.
Moderate Economic Risk With an economic stability score of 65/100, there is a moderate risk that local market conditions could lead to fluctuations in rental income or property value.
