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.
2-bedroom, 1-bathroom apartment of 97 m² on the 3rd floor, built in 2002. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features a stunning 85 m² private terrace complete with a pergola, BBQ area, and mesmerizing river views, making it an exceptional outdoor living space in the Algarve.
The valuation. The asking price of €285,000 is significantly above the fair value of €114,956, representing a discrepancy of €170,044 (59.7%). This property is clearly overpriced, making it a less attractive investment opportunity.
Fair value modelled at €114,956 from the area baseline, adjusted for condition and location. Asking €285,000 sits €170,044 (59.7%) above — overpriced versus fair value.
Asking €285,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €334,359 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 82 · Materials 81 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €334,359 + condition +€8,336 + location +€8,262 = modelled fair value of €114,956 (€1,185/m²), a €170,044 (59.7%) gap versus the €285,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 82c889 | Subject | €285,000 | €2,938 | — | 82 | 71 |
| Estômbar e Parchal · de0ad8 | Active | €320,000 | €3,265 | 11.1% | 70 | 63 |
| Estômbar e Parchal · f35eef | Active | €420,000 | €3,471 | 18.1% | 75 | 70 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 150.9% | 75 | 65 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 150.9% | 75 | 63 |
| Median comp | €427,500 | €5,422 | 84.5% | 75 | 64 |
Short-term vacation rental The 2-bed apartment in Estômbar e Parchal is overpriced at €285,000, with a fair value of only €114,956, indicating a significant gap. Additionally, the property currently yields 0% gross, making it less attractive as a short-term vacation rental investment in a tourist region like the Algarve. Buy-and-hold Given the apartment's valuation at €285,000, significantly above the fair value, it is not likely to provide a solid return on investment through a buy-and-hold strategy. The potential for appreciation is limited as the yield remains 0%, suggesting no immediate cash flow benefits. Family rental The asking price of €285,000 for the apartment far exceeds the fair market value of €114,956, classifying it as overpriced for family rental purposes. With negligible rental yield, this property is unlikely to attract families looking for affordable housing in Algarve's tourist-driven economy.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 65/100, there is a heightened risk of market fluctuations affecting rental income and occupancy rates, potentially leading to financial challenges.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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