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.
3-bedroom, 2-bathroom apartment of 134 m², built in 2003, energy rating D. Located on rua Fernão Magalhães, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment features expansive terraces totaling 34 m², ideal for outdoor leisure, and is located in a low-density building with only four units, enhancing privacy and tranquility.
The valuation. The asking price of €405,000 is €270,104 (66.7%) above fair value of €134,896, indicating the property is significantly overpriced. This valuation raises concerns about potential returns on investment.
Fair value modelled at €134,896 from the area baseline, adjusted for condition and location. Asking €405,000 sits €270,104 (66.7%) above — overpriced versus fair value.
Asking €405,000 versus the rua Fernão Magalhães area baseline of €437,242 (€3,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 68 · Materials 72 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 60 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Fernão Magalhães
Area baseline €437,242 + condition -€11,306 + location +€10,327 = modelled fair value of €134,896 (€1,007/m²), a €270,104 (66.7%) gap versus the €405,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Fernão Magalhães | Subject | €405,000 | €3,022 | — | 68 | 69 |
| Portimão · cfdd0f | Active | €370,000 | €3,426 | 13.4% | 70 | 75 |
| Portimão · 65a73b | Active | €279,000 | €3,000 | 0.7% | 62 | 72 |
| Portimão · 99f137 | Active | €290,000 | €3,295 | 9.0% | 71 | 73 |
| Portimão · ba5a38 | Active | €310,000 | €3,827 | 26.6% | 74 | 73 |
| Median comp | €300,000 | €3,361 | 11.2% | 71 | 73 |
Short-term vacation rental The 3-bed apartment in Estômbar e Parchal is overpriced at €405,000, creating a significant gap of 66.7% from its fair value of €134,896, which limits the potential for sustainable vacation rental income. With a gross yield of 3.6% and fluctuating seasonal demand influenced by tourism, this investment is unlikely to provide attractive returns. Buy-and-hold At €405,000, this property appears overpriced compared to its fair value, which significantly impacts long-term appreciation expectations. The neighborhood's score of 69/100 indicates moderate tenant quality, but the high buy-in price presents challenges for any buy-and-hold strategy. Family rental Pricing this apartment at €405,000 places it above fair market value, creating a 66.7% gap that may deter potential family renters seeking affordability. While the location offers safety and adequate schools, the property's condition score of 70/100 suggests that it may not attract families looking for higher-quality housing options.
Economic Vulnerability The property has an economic stability score of 65/100, indicating potential susceptibility to economic downturns that could affect rental income and property value.
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