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 293 m², built in 1992, energy rating D. Located Porches parish, Lagoa municipality, Faro district. This property features a significant 7910 m² plot with extensive grounds including mature fruit trees and the flexibility for future expansion or lifestyle projects.
The valuation. The asking price of €1,750,000 significantly exceeds its fair value of €573,704, representing an overpricing of €1,176,296 (67.2%). This property is not a reasonable investment given the current valuation.
Fair value modelled at €573,704 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €1,176,296 (67.2%) above — overpriced versus fair value.
Asking €1,750,000 versus the Porches, Lagoa, Faro area baseline of €1,111,642 (€3,794/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 73 · Materials 78 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 81/100 (Housing Market 85 · Amenities 80 · Economic 75 · Tenant Quality 85). Strong amenities and housing-market momentum support a premium to baseline.
Porches, Lagoa, Faro
Area baseline €1,111,642 + condition +€8,241 + location +€62,382 = modelled fair value of €573,704 (€1,958/m²), a €1,176,296 (67.2%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · f362ae | Subject | €1,750,000 | €5,973 | — | 73 | 81 |
| Lagoa e Carvoeiro · 42017e | Active | €695,000 | €5,890 | 1.4% | 76 | 70 |
| autoestrada EM530-1, 54 | Active | €580,000 | €4,328 | 27.5% | 67 | 72 |
| Lagoa e Carvoeiro · 0dcf2c | Active | €695,000 | €5,890 | 1.4% | 72 | 70 |
| rua da Igreja, 6 | Active | €425,000 | €5,743 | 3.8% | 84 | 72 |
| Median comp | €637,500 | €5,817 | 2.6% | 74 | 71 |
Short-term vacation rental The property’s premium price of €1,750,000 significantly overshadows its fair value of €573,704, suggesting it is overpriced in the competitive Algarve vacation rental market. With a low yield of 2.4% and a condition rating of 77/100, the financial return does not justify the investment. Family rental At €1,750,000, this family rental property surpasses its fair value of €573,704, indicating it is overpriced for potential tenants in the Algarve. The surrounding neighborhood boasts a tenant quality rating of 81/100, but the elevated price point makes it a less attractive option for long-term family rentals. Buy-and-hold Investing in this property at €1,750,000, which is 67.2% above its fair value of €573,704, presents significant risks as it is overpriced relative to market conditions. The property’s 2.4% yield further emphasizes the unappealing return metrics for a buy-and-hold strategy in the long term.
Economic vulnerability With an economic stability score of 75/100, there is a potential risk of market fluctuations affecting rental income and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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