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, 1-bathroom apartment of 95 m², energy rating C. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This apartment features a 16m² balcony perfect for enjoying sunny Algarve weather and access to a rooftop terrace with panoramic views over the Arade River.
The valuation. The asking price of €287,500 sits significantly above the fair value estimate of €94,445, demonstrating an overpriced situation of €193,055 (67.1%). This disparity necessitates careful consideration for potential investors.
Fair value modelled at €94,445 from the area baseline, adjusted for condition and location. Asking €287,500 sits €193,055 (67.1%) above — overpriced versus fair value.
Asking €287,500 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €327,465 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 72 · Materials 65 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
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 €327,465 + condition -€11,133 + location +€9,248 = modelled fair value of €94,445 (€994/m²), a €193,055 (67.1%) gap versus the €287,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · b7bf3e | Subject | €287,500 | €3,026 | — | 72 | 74 |
| rua do Impasse À do Poeta António Aleixo | Active | €285,000 | €3,519 | 16.3% | 70 | 71 |
| rua das Oliveiras, 49A | Active | €218,000 | €3,633 | 20.1% | 70 | 62 |
| rua Trabucho Alexandre, 16 | Active | €240,000 | €3,288 | 8.6% | 72 | 70 |
| Portimão · 4a7fe2 | Active | €240,000 | €3,810 | 25.9% | 65 | 76 |
| Median comp | €240,000 | €3,576 | 18.2% | 70 | 71 |
Short-term vacation rental This property is overpriced, presenting a significant gap of 67.1% against its fair value at €94,445, which diminishes its appeal for short-term rental yields. With a gross yield of only 4.3%, the potential return does not justify the current listing price in the tourism-driven economy of Algarve. Buy-and-hold Holding onto this property is inadvisable due to its price being significantly above fair value, limiting long-term appreciation potential. The condition score of 68/100 does not support the elevated investment, suggesting that capital might be better allocated elsewhere. Long-term rental The current listing price makes this investment unappealing for long-term rental strategies, as the property is steeply overpriced at €287,500 compared to the fair value. Given the gross yield of 4.3%, the financial metrics do not align well with sustainable long-term rental expectations. Not ideal for Student housing, Luxury market, Industrial property.
Economic Vulnerability The economic stability score of 65/100 indicates a heightened risk of economic fluctuations 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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