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 €277,614 (€2,862/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 €277,614 + 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.
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.
