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.
4-bedroom, 5-bathroom villa of 228 m², built in 2004, energy rating C. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Highlight: The villa features an upper-floor balcony with breathtaking sea views, ideal for enjoying Algarve's sunsets and ocean breezes privately. Location: Situated in the exclusive Presa da Moura development, offering both tranquility and easy access to coastal attractions.
The valuation. The asking price of €1,299,000 is significantly above the fair value of €277,331, indicating it is overpriced by €1,021,669 (78.7%). This substantial premium makes it a challenging investment.
Fair value modelled at €277,331 from the area baseline, adjusted for condition and location. Asking €1,299,000 sits €1,021,669 (78.7%) above — overpriced versus fair value.
Asking €1,299,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €785,916 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 76 · Materials 85 · Room dimensions 80). 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 72). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €785,916 + condition +€26,719 + location +€19,420 = modelled fair value of €277,331 (€1,216/m²), a €1,021,669 (78.7%) gap versus the €1,299,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 9385b6 | Subject | €1,299,000 | €5,697 | — | 76 | 71 |
| Ferragudo · 82c71f | Active | €1,450,000 | €6,042 | 6.0% | 80 | 72 |
| Estômbar e Parchal · 93724d | Active | €1,299,000 | €4,811 | 15.6% | 78 | 72 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 17.3% | 80 | 75 |
| Estômbar e Parchal · 9375f2 | Active | €1,395,000 | €6,707 | 17.7% | 84 | 78 |
| Median comp | €1,422,500 | €6,362 | 11.7% | 80 | 74 |
Short-term vacation rental The property is priced significantly above its fair value, creating a challenging proposition for short-term vacation rental investment with a gap of 78.7%. At a gross yield of only 2.2%, the potential returns are insufficient to justify the investment against the backdrop of a volatile tourism-driven economy. Buy-and-hold Considering the drastic price discrepancy of 78.7% against its fair value, investing in this property as a buy-and-hold strategy appears unwise. The neighborhood's economic instability, driven by seasonal employment, further complicates the potential for long-term appreciation. Family rental With the property being overpriced by 78.7% relative to its fair value, pursuing a family rental strategy is impractical. The gross yield of 2.2% does not align with the necessary financial returns for a stable family rental investment in a neighborhood facing economic fluctuations.
Economic Vulnerability The economic stability score of 65/100 indicates a notable risk as it suggests potential fluctuations in market conditions that could affect rental income and property value.
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