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 107 m², energy rating C. Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment features a large balcony perfect for sunbathing and outdoor dining, alongside a short 5-minute walk to beautiful beaches like Praia de Nossa Senhora da Rocha.
The valuation. The asking price of €325,000 is significantly above the fair value of €187,417, representing an excess of €137,583 (42.3%). This property is therefore considered overpriced.
Fair value modelled at €187,417 from the area baseline, adjusted for condition and location. Asking €325,000 sits €137,583 (42.3%) above — overpriced versus fair value.
Asking €325,000 versus the Porches, Lagoa, Faro area baseline of €405,958 (€3,794/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 (Condition 70 · Materials 68 · Room dimensions 71). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 68/100 (Housing Market 78 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Porches, Lagoa, Faro
Area baseline €405,958 + condition -€9,530 + location +€13,228 = modelled fair value of €187,417 (€1,752/m²), a €137,583 (42.3%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · 6fb82b | Subject | €325,000 | €3,037 | — | 70 | 68 |
| Armação de Pêra · ac994f | Active | €398,000 | €3,317 | 9.2% | 65 | 69 |
| rua Quinta da Saudade, 6 | Active | €310,000 | €3,875 | 27.6% | — | 73 |
| avenida dos Oceanos | Active | €345,000 | €2,654 | 12.6% | 75 | 63 |
| rua das Embarcações, 8 | Active | €450,000 | €4,639 | 52.7% | 76 | 73 |
| Median comp | €371,500 | €3,596 | 18.4% | 75 | 71 |
Short-term vacation rental The apartment's listing price of €325,000 represents a significant gap of 42.3% from its fair value of €187,417, making it overpriced for short-term vacation rental investments. Even with a gross yield of 4.4%, the elevated purchase price impacts potential returns unfavorably, particularly in the competitive Algarve market. Buy-and-hold With the current price of €325,000 significantly exceeding its fair value of €187,417, this property is overpriced for long-term buy-and-hold strategies. The gross yield of 4.4% may not adequately compensate for the initial investment, limiting long-term growth potential in a neighborhood rated 68/100. Long-term rental At €325,000, this 2-bed apartment is overpriced when compared to its fair value of €187,417, undermining its viability as a long-term rental option. A gross yield of 4.4% is insufficient to offset the significant overvaluation, particularly given the neighborhood's average condition score of 68/100.
Economic Fluctuation Risk The economic stability score of 60/100 indicates potential volatility in the local economy, which could impact tenant retention and rent collections.
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