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 207 m², built in 2003, energy rating C. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy features: The villa boasts a heated pool ideal for year-round relaxation, alongside a barbecue area perfect for entertaining, all set against a scenic view of the 18th golf hole.
The valuation. The asking price of €1,050,000 is significantly above fair value of €230,895, resulting in an overvaluation of €819,105 (78.0%). This property is not a sound investment at its current price.
Fair value modelled at €230,895 from the area baseline, adjusted for condition and location. Asking €1,050,000 sits €819,105 (78.0%) above — overpriced versus fair value.
Asking €1,050,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €713,529 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 70 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €713,529 + condition +€4,205 + location +€16,792 = modelled fair value of €230,895 (€1,115/m²), a €819,105 (78.0%) gap versus the €1,050,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 9114d1 | Subject | €1,050,000 | €5,072 | — | 70 | 70 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 31.7% | 80 | 75 |
| Estômbar e Parchal · 9385b6 | Active | €1,299,000 | €5,697 | 12.3% | 76 | 71 |
| Estômbar e Parchal · 93724d | Active | €1,299,000 | €4,811 | 5.2% | 78 | 72 |
| Lagoa e Carvoeiro · 6eb9d7 | Active | €995,000 | €3,699 | 27.1% | 80 | 72 |
| Median comp | €1,299,000 | €5,254 | 3.6% | 79 | 72 |
Short-term vacation rental Despite the high gross yield of 5.2% and the villa's proximity to tourism, the property is overpriced by 78.0% relative to its fair value of €230,895, which undermines its investment viability. This significant discrepancy suggests that operating a short-term rental could yield diminishing returns, making it an unattractive option for investors at this price point. Long-term rental While the location in the Algarve is known for tourism appeal, the villa's staggering 78.0% gap from fair value indicates that it is overpriced at €1,050,000, thereby limiting its attractiveness for long-term rental strategies. The conditions of both the property and the neighborhood ratings reveal additional risks, suggesting that rental income may not justify the investment costs. Buy-and-hold The 4-bed villa's price presents a substantial 78.0% premium over its fair value, indicating it is overpriced and may not appreciate sufficiently to provide a profitable buy-and-hold strategy. Given the pressures of a tourist-dependent local economy and average neighborhood conditions, this property lacks the long-term growth potential needed to justify its current market price.
Economic Vulnerability The property is at risk due to a moderate economic stability score of 60/100, which suggests potential fluctuations in the local economy that could affect rental income.
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