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, 3-bathroom house of 290 m², built in 1998, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features an expansive landscaped garden with direct access to a private pool, enhancing its appeal for outdoor gatherings and family entertainment.
The valuation. The asking price of €1,200,000 is significantly above the fair value of €349,660, with a discrepancy of €850,340 (70.9%). This property is overpriced and does not present a favorable investment opportunity.
Fair value modelled at €349,660 from the area baseline, adjusted for condition and location. Asking €1,200,000 sits €850,340 (70.9%) above — overpriced versus fair value.
Asking €1,200,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €829,980 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €829,980 + condition +€28,547 + location +€27,054 = modelled fair value of €349,660 (€1,206/m²), a €850,340 (70.9%) gap versus the €1,200,000 asking price.
Short-term vacation rental The property is overpriced with a significant gap of 70.9% compared to its fair value of €349,660, which limits the potential for profit maximization in a vacation rental scenario. With a gross yield of only 3.7% and an 81/100 condition rating, it risks falling short in a market that is sensitive to price-performance balance. Buy-and-hold Given that the property's valuation is 70.9% higher than its fair value, this investment strategy may yield disappointing returns over time. The strong reliance on seasonal tourism in the Algarve further complicates the likelihood of substantial appreciation, making this a less than ideal buy-and-hold opportunity. Long-term rental The 3.7% gross yield indicates that the property's income potential does not justify the 70.9% premium over its fair value, marking it as overpriced. Additionally, tenant quality and neighborhood ratings do provide some comfort, but the overall financial metrics suggest that long-term rental viability is low under current valuation.
Low Economic Growth Risk The economic stability score of 55/100 indicates a potentially weak economic environment, which may pose challenges for long-term tenant retention and property appreciation.
