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, 2-bathroom apartment of 165 m², built in 2004, energy rating C. Located on rua de São Pedro, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment includes an exclusive and integrated outdoor area of 19 m², enhancing the living experience with convenient green space access for relaxation and leisure. Condition Notes: The overall condition appears well-maintained with only minor wear.
The valuation. The asking price of €395,000 is significantly above the fair value of €190,437, by €204,563 (51.8%). This property is overpriced, making it a less attractive investment opportunity. Buy-to-flip angle. A potential resale strategy could focus on the high-quality finishes and features, appealing to buyers seeking move-in-ready properties. However, the current asking price limits the potential profit margins on a flip. Buy-to-let angle. With a gross yield of 3.7% and estimated monthly rental income of approximately €1,218, this property may attract tenants looking for a high-quality rental in a desirable tourist region. Long-term rental potential is temperate due to the elevated asking price.
Fair value modelled at €190,437 from the area baseline, adjusted for condition and location. Asking €395,000 sits €204,563 (51.8%) above — overpriced versus fair value.
Asking €395,000 versus the rua de São Pedro area baseline of €472,230 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 68 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua de São Pedro
Area baseline €472,230 + condition +€7,734 + location +€15,393 = modelled fair value of €190,437 (€1,154/m²), a €204,563 (51.8%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de São Pedro | Subject | €395,000 | €2,394 | — | 75 | 73 |
| Ferragudo · f3607d | Active | €395,000 | €2,394 | 0% | 72 | 74 |
| praceta Mar de Timor | Active | €335,000 | €3,018 | 26.1% | 68 | 71 |
| rua da Raminha, 25 | Active | €308,000 | €3,385 | 41.4% | 75 | 74 |
| Portimão · dee648 | Active | €350,000 | €3,684 | 53.9% | 75 | 76 |
| Median comp | €342,500 | €3,202 | 33.7% | 74 | 74 |
Short-term vacation rental The property is not ideal for short-term vacation rentals due to its significant overpricing compared to its fair value, indicating a potential risk for low occupancy rates. Additionally, with a yield of only 3.7%, the financial returns do not align well with the investment risk associated with this strategy. Long-term rental Investing in long-term rental for this property is not advisable, as it is overpriced by 51.8% against its fair value, limiting prospective profitability. With the current conditions and the modest yield, the financial viability of a long-term rental strategy appears unfavorable. Buy-and-hold The buy-and-hold strategy for this property presents a challenge due to its significant overvaluation, which could hinder capital appreciation over time. Furthermore, while the property is located in a desirable tourist region, the current price point does not justify a hold strategy given the low return potential indicated by the yield.
Economic Sensitivity The economic stability score of 68/100 indicates a moderate risk of economic downturn affecting property values and rental income.
