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, 3-bathroom house of 156 m², built in 2023, energy rating C. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes a dedicated study area ideal for remote work and a BBQ space, enhancing both functionality and outdoor enjoyment for gatherings.
The valuation. The asking price of €375,000 is significantly above the fair value of €182,342, resulting in a difference of €192,658 (51.4%). This property is consequently considered overpriced.
Fair value modelled at €182,342 from the area baseline, adjusted for condition and location. Asking €375,000 sits €192,658 (51.4%) above — overpriced versus fair value.
Asking €375,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €509,028 (€3,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 78 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €509,028 + condition +€10,238 + location +€13,920 = modelled fair value of €182,342 (€1,169/m²), a €192,658 (51.4%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · de0c2c | Subject | €375,000 | €2,404 | — | 80 | 72 |
| rua Infante Santo, 1 | Active | €535,000 | €4,496 | 87.0% | 75 | 72 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 102.9% | 70 | 70 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 147.4% | 80 | 63 |
| Portimão · 65a674 | Active | €349,000 | €4,474 | 86.1% | 75 | 73 |
| Median comp | €865,000 | €4,687 | 95.0% | 75 | 71 |
Short-term vacation rental With a fair value of €182,342, the property at €375,000 presents a significant 51.4% premium, making it less favorable for short-term vacation rental investments despite a strong 6.1% gross yield. Consequently, while the region attracts tourists, the overpricing limits the potential for optimal returns in this segment. Long-term rental Given the property’s overpriced position at €375,000 compared to a fair value of €182,342, the appeal for long-term rental is diminished, even with a decent 6.1% gross yield. Landlords should reconsider this investment as the purchase price does not justify the expected rental income and tenant quality in the area. Buy-and-hold Investing in a buy-and-hold strategy for this property feels imprudent due to its 51.4% premium over fair value, at €375,000 against €182,342. Holding onto an overpriced asset can undermine long-term growth prospects and financial performance in a competitive housing market. Not ideal for: Student housing, Luxury market, Value-add renovation The property is not suitable for student housing or the luxury market due to high acquisition costs and low renovation potential in its current state, with a condition rating of 79/100. Additionally, the existing neighborhood dynamics do not support significant value-add renovations, making it a less attractive investment path.
Economic Vulnerability A property with an economic stability score of 55/100 indicates a susceptibility to market fluctuations that could impact rental income.
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