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.
1-bedroom, 2-bathroom apartment of 101 m², built in 2004, energy rating B. Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: The property offers direct access to a sheltered beach and exclusive discounts on green fees at nearby Pestana golf courses, enhancing its lifestyle appeal.
The valuation. The asking price of €420,000 is significantly above the fair value of €198,649, reflecting an overpricing of €221,351 (52.7%). This indicates that potential buyers may struggle to justify the investment based on valuation metrics.
Fair value modelled at €198,649 from the area baseline, adjusted for condition and location. Asking €420,000 sits €221,351 (52.7%) above — overpriced versus fair value.
Asking €420,000 versus the Porches, Lagoa, Faro area baseline of €383,194 (€3,794/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Porches, Lagoa, Faro
Area baseline €383,194 + condition +€7,891 + location +€17,342 = modelled fair value of €198,649 (€1,967/m²), a €221,351 (52.7%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · 6d514f | Subject | €420,000 | €4,158 | — | 75 | 75 |
| Lagoa e Carvoeiro · 65a863 | Active | €350,000 | €3,608 | 13.2% | 70 | 70 |
| Porches · 6fb82b | Active | €325,000 | €3,037 | 27.0% | 70 | 68 |
| Porches · 6fbc1a | Active | €310,000 | €3,690 | 11.3% | 80 | 74 |
| Armação de Pêra · 1e60bc | Active | €405,000 | €3,000 | 27.9% | 72 | 68 |
| Median comp | €337,500 | €3,323 | 20.1% | 71 | 69 |
Short-term vacation rental This 1-bed apartment in Porches is overpriced by 52.7%, with a listing price of €420,000 compared to a fair value of €198,649. Given the 0% yield, investing in this property for short-term rental purposes would not be financially viable, especially during the seasonal tourism peaks in the coastal Algarve region. Long-term rental Acquiring this apartment for long-term rental is not advisable as it is overpriced at €420,000, greatly exceeding the fair value of €198,649. With a yield of 0% and a quality rating of 75 out of 100 for the neighborhood, the financial returns would be insufficient to justify this investment. Buy-and-hold Holding onto this property as a buy-and-hold investment is unwise, as its current valuation is 52.7% above fair value, making it a questionable financial commitment. The notorious zero yield indicates that long-term appreciation potential may not compensate for the considerable initial investment outlay. Not ideal for: Student housing, Luxury market, Industrial use
Economic and Tenant Instability Risk With both economic stability and tenant stability scores at 70/100, there is a significant risk of fluctuating rental income and potential vacancies due to market volatility.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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