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 €328,670 from the area baseline, adjusted for condition and location. Asking €1,299,000 sits €970,330 (74.7%) above — overpriced versus fair value.
Asking €1,299,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €881,010 (€3,263/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.
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.
Estômbar e Parchal, Lagoa, Faro
Area baseline €881,010 + condition +€30,797 + location +€24,093 = modelled fair value of €328,670 (€1,217/m²), a €970,330 (74.7%) gap versus the €1,299,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 93724d | Subject | €1,299,000 | €4,811 | — | 78 | 72 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 38.9% | 80 | 75 |
| Estômbar e Parchal · 9375f2 | Active | €1,395,000 | €6,707 | 39.4% | 84 | 78 |
| Ferragudo · 82c71f | Active | €1,450,000 | €6,042 | 25.6% | 80 | 72 |
| rua do Pestana Golf Resort | Active | €1,300,000 | €5,652 | 17.5% | 70 | 80 |
| Median comp | €1,422,500 | €6,362 | 32.2% | 80 | 77 |
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.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
