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.
0-bedroom, 0-bathroom country_house of 120 m². Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property offers nearly 4 hectares of land with direct access to a waterway, allowing for unique development possibilities in a rare natural setting.
The valuation. The asking price of €800,000 exceeds fair value by €804,830, marking it as overpriced at 100.6%. This indicates that potential investors might face challenges in achieving a profitable exit without significant price adjustments. Buy-to-flip angle. The resale strategy would require identifying quick renovations to enhance appeal; however, given the property’s current condition of 0/100, substantial investment is necessary to attract buyers while recouping related costs. Buy-to-let angle. With an estimated gross yield of 1.7%, the rental income strategy focuses on short-term vacation rentals in the tourist-driven Algarve market, capitalizing on location to maximize occupancy and potential rental rates.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · b7c206 | Subject | €800,000 | €6,667 | — | — | 79 |
| Estômbar e Parchal · 9385aa | Active | €1,870,000 | €3,740 | 43.9% | — | 76 |
| rua Amália Rodrigues, 133 | Active | €465,000 | €3,941 | 40.9% | 65 | 71 |
| Estômbar e Parchal · 28b869 | Active | €380,000 | €2,375 | 64.4% | — | 71 |
| rua das Olarias | Active | €255,000 | €3,000 | 55.0% | 63 | 79 |
| Median comp | €422,500 | €3,370 | 49.4% | 64 | 74 |
Short-term vacation rental Despite the attractive tourist-driven economy in Estômbar e Parchal, this property seems overpriced, with a gap of 100.6% versus its fair value of €-4,830. The gross yield of 1.7% is significantly below competitive rates for vacation rentals in the Algarve, raising concerns about profitability. Long-term rental While the neighborhood boasts a respectable rating of 79/100, this property’s excessive price of €800,000 makes it an unattractive option for long-term investment. The anticipated gross yield of 1.7% further suggests that the investment is not positioned for favorable cash flow in the current market. Buy-and-hold Investing in a buy-and-hold strategy for this property appears risky due to its substantial overvaluation and a significant gap from fair value. The low yield of 1.7% combined with high acquisition costs indicates a long road ahead for reaching favorable returns. Not ideal for: Student housing and industrial investment due to the location's limited appeal for those demographics and the property type's suitability.
Economic downturn risk A potential downturn in the economy could adversely affect the property value, given the economic stability score of 75/100, which may lead to fluctuations in 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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