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, 1-bathroom apartment of 98 m², built in 2006. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts a private terrace perfect for outdoor dining, providing a serene view of the surrounding landscape, enhancing the living experience significantly.
The valuation. The asking price of €320,000 is significantly higher than the fair value of €101,783, presenting a difference of €218,217 (68.2%). This property is clearly overpriced in the current market.
Fair value modelled at €101,783 from the area baseline, adjusted for condition and location. Asking €320,000 sits €218,217 (68.2%) above — overpriced versus fair value.
Asking €320,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €337,806 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 70 · Materials 75 · Room dimensions 74). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €337,806 + condition -€2,756 + location +€5,167 = modelled fair value of €101,783 (€1,039/m²), a €218,217 (68.2%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · de0ad8 | Subject | €320,000 | €3,265 | — | 70 | 63 |
| Estômbar e Parchal · 82c889 | Active | €285,000 | €2,938 | 10.0% | 82 | 71 |
| rua de São Pedro | Active | €395,000 | €2,394 | 26.7% | 75 | 73 |
| Estômbar e Parchal · f35eef | Active | €420,000 | €3,471 | 6.3% | 75 | 70 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 125.8% | 75 | 63 |
| Median comp | €407,500 | €3,205 | 1.9% | 75 | 71 |
Short-term vacation rental Despite the attractive location in the Algarve region, the apartment's listing price of €320,000 is significantly above its fair value of €101,783, leaving a gap of 68.2%. This discrepancy suggests that potential yield returns of 3.9% gross may not justify the investment for a short-term vacation rental. Long-term rental With a gross yield of only 3.9% and a high asking price, this 2-bed apartment in Estômbar e Parchal appears overpriced compared to its fair value of €101,783. Investors seeking dependable returns in a long-term rental strategy would likely find better options elsewhere in the market. Buy-and-hold Given the valuation gap and the apartment's condition score of 73/100, the current price of €320,000 indicates the property is overpriced as compared to the identified fair value of €101,783. This makes it a less attractive buy-and-hold investment, particularly in the context of typical tourist appeal without significant appreciation prospects.
Economic Risk The economic stability score of 55/100 indicates potential vulnerability to market fluctuations that could affect 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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