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, 2-bathroom villa of 155 m², built in 2022, energy rating B. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. The property features a private pool surrounded by landscaped gardens, providing a serene outdoor retreat perfect for relaxation and entertainment in a luxurious setting.
The valuation. The asking price of €735,000 is significantly above the fair value of €191,633, representing an overpriced situation at €543,367 (73.9% discrepancy). This valuation indicates a poor investment opportunity given the inflated price point.
Fair value modelled at €191,633 from the area baseline, adjusted for condition and location. Asking €735,000 sits €543,367 (73.9%) above — overpriced versus fair value.
Asking €735,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €534,285 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 75 · 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 €534,285 + condition +€19,375 + location +€15,088 = modelled fair value of €191,633 (€1,236/m²), a €543,367 (73.9%) gap versus the €735,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 6ebb1c | Subject | €735,000 | €4,742 | — | 80 | 74 |
| urbanização Boca do Rio, 7 | Active | €569,000 | €1,550 | 67.3% | 80 | 66 |
| Lagoa e Carvoeiro · 0dcd9f | Active | €1,250,000 | €4,417 | 6.9% | 78 | 72 |
| Estômbar e Parchal · 956e5b | Active | €695,000 | €4,484 | 5.4% | 80 | 72 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 2.9% | 70 | 70 |
| Median comp | €945,000 | €4,451 | 6.1% | 79 | 71 |
Short-term vacation rental The property is overpriced at €735,000 compared to its fair value of €191,633, creating a significant gap of 73.9%. Despite the strong short-term rental potential in Algarve, the yield of 3.1% suggests that this investment may not generate enough return to justify the high initial cost. Long-term rental With a gross yield of 3.1%, this property falls short of providing attractive returns for long-term rental investors given its overpriced status. While there is demand for long-term rentals in the region, the valuation gap indicates an unfavourable investment scenario. Buy-and-hold Given the property’s listing price of €735,000, significantly above its fair value, holding this asset long-term may not yield the expected appreciation. The potential for market value growth in Algarve does not compensate for the high entry price, making buy-and-hold an unappealing strategy in this case.
Economic Vulnerability The property faces potential financial shortcomings due to a moderate economic stability score of 65/100, which suggests limited resilience in economic downturns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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