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 138 m², energy rating B. Located on urbanização Encosta do Pateiro, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment boasts an exclusive rooftop terrace with unobstructed river views, perfect for outdoor leisure, and comes with a two-car garage box in the basement.
The valuation. The asking price of €420,000 exceeds the fair value of €153,241 by €266,759 (63.5%). This property is overpriced when considering its true market worth.
Fair value modelled at €153,241 from the area baseline, adjusted for condition and location. Asking €420,000 sits €266,759 (63.5%) above — overpriced versus fair value.
Asking €420,000 versus the urbanização Encosta do Pateiro area baseline of €394,956 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 71 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Encosta do Pateiro
Area baseline €394,956 + condition +€3,234 + location +€10,075 = modelled fair value of €153,241 (€1,110/m²), a €266,759 (63.5%) gap versus the €420,000 asking price.
Short-term vacation rental The property is overpriced, with a fair value of €153,241 compared to the listing price of €420,000, indicating a significant 63.5% gap. This high price point paired with a gross yield of only 3% makes it a poor investment opportunity for a short-term vacation rental. Long-term rental At €420,000, this property does not present a feasible return, with a gross yield of just 3%, falling short of typical long-term rental expectations. Given its overpriced status against a fair value of €153,241, positioning it as a long-term rental would likely lead to suboptimal cash flow. Buy-and-hold Investing in this property for a buy-and-hold strategy is unattractive due to its overpriced listing of €420,000, significantly surpassing its fair value of €153,241. The 3% gross yield is insufficient to justify holding an asset with such a pronounced valuation gap. Not ideal for student housing Due to the property’s high listing price of €420,000 compared to its fair value of €153,241, it is not an ideal option for student housing investments. The attractive rental yield for student accommodations is unlikely to be achieved at this price point. Not ideal for luxury market The apartment’s overpriced nature, at €420,000 against a fair value of €153,241, suggests that it wouldn't meet luxury market expectations in terms of value proposition. This discrepancy limits its appeal to affluent buyers looking for premium assets in the Algarve region.
Economic Vulnerability The property faces economic volatility risk due to its moderate economic stability score of 65/100, potentially affecting rental income and property value. Tenant Turnover Risk The combination of a tenant stability score of 65/100 raises the likelihood of tenant turnover, which can lead to increased vacancy rates and loss of rental income.
