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.
1-bedroom, 2-bathroom house of 155 m², built in 2022, energy rating A. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property boasts an exclusive resort setting with integrated management services, providing a seamless transition for potential vacation rentals alongside luxurious amenities including landscaped gardens and a private pool.
The valuation. The asking price of €695,000 is significantly above the fair value of €187,470, resulting in a notable overpricing of €507,530 (73.0%). This discrepancy suggests the property is not a favorable investment at this price. Buy-to-flip angle. A buy-to-flip strategy would face significant challenges given the current overvaluation; wholesaling could yield minimal margins unless market conditions drastically improve. Profit potential appears limited without substantial price reductions. Buy-to-let angle. With an estimated gross yield of 2.5% from rent, generating approximately €1,448 per month, the rental income strategy may not provide sufficient returns given the high acquisition cost, likely leading to cash flow challenges.
Fair value modelled at €187,470 from the area baseline, adjusted for condition and location. Asking €695,000 sits €507,530 (73.0%) above — overpriced versus fair value.
Asking €695,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €443,610 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €443,610 + condition +€16,469 + location +€13,831 = modelled fair value of €187,470 (€1,209/m²), a €507,530 (73.0%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 956e5b | Subject | €695,000 | €4,484 | — | 80 | 72 |
| rua Amália Rodrigues, 133 | Active | €465,000 | €3,941 | 12.1% | 65 | 71 |
| urbanização Boca do Rio, 7 | Active | €569,000 | €1,550 | 65.4% | 80 | 66 |
| Lagoa e Carvoeiro · 0dcd9f | Active | €1,250,000 | €4,417 | 1.5% | 78 | 72 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 8.8% | 70 | 70 |
| Median comp | €882,000 | €4,179 | 6.8% | 74 | 71 |
Short-term vacation rental Given the property's 2.5% gross yield and a fair value gap of 73.0%, investing in a short-term vacation rental may not meet revenue expectations in the current market. Additionally, the relatively high price paired with seasonal demand in the Algarve suggests that this property is overpriced for such a strategy. Long-term rental While the 82/100 rating for condition indicates a well-maintained property, the significant disparity between listing price (€695,000) and fair value (€187,470) signals that it is overpriced for long-term rental purposes. The expected yield of 2.5% may not justify the investment when considering the rental pricing dynamics of the local market. Buy-and-hold The buy-and-hold strategy appears unviable for this property given the excessive listing price that exceeds its fair market value by 73.0%. With a gross yield of only 2.5% and the property being overpriced, it does not project a favorable growth potential in the long-term investment landscape.
Economic Vulnerability The economic stability score of 65/100 suggests potential vulnerabilities in the local market that could impact rental income and property value.
