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 house of 198 m², built in 2001, energy rating C. Located on rua do Pestana Golf Resort, 128, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a private pool and garden within the prestigious Gramacho Golf Resort, along with a 40% golfing discount for owners, enhancing its exclusive appeal.
The valuation. The asking price of €1,100,000 is significantly above fair value at €226,174, leading to an overvaluation of €873,826 (79.4%). Given this disparity, the property is considered overpriced. Buy-to-flip angle. A resale strategy could target buyers in the luxury vacation market, aiming for a substantial markup following minor renovations or staging enhancements to capitalize on demand. Buy-to-let angle. With an estimated rental income of €2,933/month, the gross yield stands at 3.2%, suggesting a long-term rental strategy could offer stable returns given the location’s tourism influence.
Fair value modelled at €226,174 from the area baseline, adjusted for condition and location. Asking €1,100,000 sits €873,826 (79.4%) above — overpriced versus fair value.
Asking €1,100,000 versus the rua do Pestana Golf Resort, 128 area baseline of €682,506 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Pestana Golf Resort, 128
Area baseline €682,506 + condition +€7,734 + location +€17,668 = modelled fair value of €226,174 (€1,142/m²), a €873,826 (79.4%) gap versus the €1,100,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Pestana Golf Resort, 128 | Subject | €1,100,000 | €5,556 | — | 75 | 72 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 12.2% | 70 | 70 |
| Lagoa e Carvoeiro · 6eb9d7 | Active | €995,000 | €3,699 | 33.4% | 80 | 72 |
| Estômbar e Parchal · 735450 | Active | €1,350,000 | €5,947 | 7.0% | 78 | 72 |
| Estômbar e Parchal · de0c2c | Active | €375,000 | €2,404 | 56.7% | 80 | 72 |
| Median comp | €1,095,000 | €4,289 | 22.8% | 79 | 72 |
Short-term vacation rental The property’s potential as a short-term vacation rental is limited by its significant 79.4% gap from fair value, indicating that it is overpriced, which may deter tourist interest in a competitive market. Additionally, the gross yield of 3.2% does not sufficiently compensate for the high acquisition cost based on its location in the Algarve, known for tourism. Long-term rental Acquiring this property for long-term rental may not be a financially sound decision, given its perceived overpricing at €1,100,000 when the fair value is only €226,174. This substantial disparity may lead to lower tenant demand and rental income that doesn’t align with initial investment expectations. Buy-and-hold Investing in this property as a buy-and-hold strategy is inadvisable due to the significant overvaluation reflected by a 79.4% gap from fair value. With the appreciation potential limited by its current price and the existing economic reliance on tourism, this investment may yield unsatisfactory returns in the long term.
Economic vulnerability With an economic stability score of 65/100, this property faces moderate risk due to potential fluctuations in local market conditions impacting 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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