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 127 m², energy rating A. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features a private storage room and garage space, along with a scenic river view, enhancing both functionality and lifestyle appeal.
The valuation. The asking price of €325,000 exceeds fair value by €165,924, or 51.1%. This significant difference indicates the property is overpriced.
Fair value modelled at €159,076 from the area baseline, adjusted for condition and location. Asking €325,000 sits €165,924 (51.1%) above — overpriced versus fair value.
Asking €325,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €363,474 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 85 · Materials 88 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 78/100 (Housing Market 80 · Amenities 85 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €363,474 + condition +€15,875 + location +€14,423 = modelled fair value of €159,076 (€1,253/m²), a €165,924 (51.1%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 262077 | Subject | €325,000 | €2,559 | — | 85 | 78 |
| Estômbar e Parchal · 38a075 | Active | €380,000 | €3,140 | 22.7% | — | 65 |
| Portimão · 99f185 | Active | €515,000 | €3,679 | 43.7% | 75 | 78 |
| Portimão · 090095 | Active | €495,000 | €3,536 | 38.2% | 75 | 75 |
| rua Doutor Coelho de Carvalho S / N | Active | €585,000 | €5,177 | 102.3% | 85 | 68 |
| Median comp | €505,000 | €3,608 | 41.0% | 75 | 72 |
Short-term vacation rental\nThe property’s robust appeal due to its location as a tourist attraction fails to justify the significant price gap of 51.1% from its fair market value. At a gross yield of only 4.3%, the financial returns do not compensate for the overpriced listing, limiting the investment potential in the short-term rental market.\n\nLong-term rental\nDespite the relatively safe neighbourhood and decent amenities, the property’s overpriced status at €325,000 creates a substantial barrier to achieving a competitive rental yield. With the fair value at €159,076, investors may struggle to secure tenants willing to pay high rents reflective of such a steep investment.\n\nLuxury market\nEntering the luxury market with this 2-bed apartment is undermined by the staggering 51.1% gap to its fair value, signaling an unsustainable pricing point. As such, the allure of this property in a generally appealing neighbourhood is diminished by its overpriced nature, making it a less attractive option for discerning luxury investors.
Economic Downturn Risk A score of 75/100 in economic stability indicates that unforeseen downturns could impact property values and tenant demand negatively.
