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 villa of 191 m², built in 2006, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This villa includes a large terrace with a private jacuzzi, providing stunning 180-degree views over the golf course, enhancing outdoor relaxation and entertainment options.
The valuation. The asking price of €795,000 sits significantly above fair value, which is estimated at €220,388. This results in an inflated premium of €574,612 (72.3%), confirming the property is overpriced.
Fair value modelled at €220,388 from the area baseline, adjusted for condition and location. Asking €795,000 sits €574,612 (72.3%) above — overpriced versus fair value.
Asking €795,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €658,377 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €658,377 + condition +€10,445 + location +€16,269 = modelled fair value of €220,388 (€1,154/m²), a €574,612 (72.3%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 28b841 | Subject | €795,000 | €4,162 | — | 75 | 71 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 42.9% | 75 | 70 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 42.9% | 80 | 63 |
| Estômbar e Parchal · 023968 | Active | €1,200,000 | €4,138 | 0.6% | 80 | 73 |
| Lagoa e Carvoeiro · b4540b | Active | €1,075,000 | €6,073 | 45.9% | 75 | 71 |
| Median comp | €1,275,000 | €5,947 | 42.9% | 78 | 71 |
Short-term vacation rental The property is overpriced at €795,000 compared to a fair value of €220,388, indicating a significant 72.3% gap that compromises expected returns. With an attractive gross yield of only 3.6%, this villa may struggle to generate sufficient revenue to justify its elevated price in a competitive tourist market. Buy-and-hold Investing in this property as a buy-and-hold strategy poses substantial risk, given its current valuation well above fair market value, creating a disconnect from realistic appreciation potential. With the high gap of 72.3% and poor yield of 3.6%, long-term value growth is unlikely, especially in light of local economic conditions. Family rental This villa's pricing at €795,000 limits its suitability for family rental prospects, as the valuation starkly outpaces its fair value of €220,388. The potential gross yield of 3.6% does not adequately compensate for the high cost, making it less appealing for families seeking affordable housing options in the Algarve region.
Economic Volatility Risk The economic stability score of 65/100 indicates potential fluctuations in market conditions that could negatively impact property value and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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