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, 2-bathroom house of 235 m², built in 1988, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes an expansive 20,180m² lot with substantial privacy, an electric gate, and direct access to a nearby golf course, enhancing its appeal for outdoor enthusiasts.
The valuation. The asking price of €1,575,000 significantly exceeds the fair value of €179,376, making the property overpriced by €1,395,624, or 88.6%. Such a premium suggests limited room for negotiation or immediate value creation. Buy-to-flip angle. Due to its overpriced status, a buy-and-flip strategy may be challenging unless significant renovations are made, enhancing the property before resale to attract buyers at a competitive price. Buy-to-let angle. The projected rental income of €2,625 per month equates to a gross yield of only 2%, suggesting that while suitable for long-term holding, the returns may not justify the high acquisition cost.
Fair value modelled at €179,376 from the area baseline, adjusted for condition and location. Asking €1,575,000 sits €1,395,624 (88.6%) above — overpriced versus fair value.
Asking €1,575,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €810,045 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 56/100 (Condition 54 · Materials 60 · Room dimensions 55). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €810,045 + condition -€69,398 + location +€10,485 = modelled fair value of €179,376 (€763/m²), a €1,395,624 (88.6%) gap versus the €1,575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 911655 | Subject | €1,575,000 | €6,702 | — | 54 | 61 |
| Lagoa e Carvoeiro · f35f4c | Active | €615,000 | €3,968 | 40.8% | 60 | 71 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 27.2% | 70 | 70 |
| Estômbar e Parchal · 001650 | Active | €675,000 | €2,813 | 58.0% | — | 72 |
| Estômbar e Parchal · 4d416d | Active | €1,390,000 | €5,792 | 13.6% | — | 74 |
| Median comp | €935,000 | €4,423 | 34.0% | 65 | 72 |
Short-term vacation rental This property, with a listing price of €1,575,000, is excessively priced compared to its fair value of €179,376, presenting an 88.6% gap. Given the yield of only 2% gross, it is unlikely to generate the lucrative returns typically expected from a vacation rental in the Algarve. Buy-and-hold Investing in this property as a buy-and-hold asset is not advisable, considering it is overpriced at €1,575,000 and significantly deviates from its fair value of €179,376. The modest condition score of 56/100 further diminishes its potential as a stable long-term investment. Long-term rental The listing of €1,575,000 for this property is well above its fair value of €179,376, leading to an 88.6% gap that suggests overpricing. With a low gross rental yield of 2%, it does not present a compelling case for long-term rental investment in a tourist-heavy region like the Algarve.
Economic and Tenant Instability With both economic stability and tenant stability scores at 55/100, there is a significant risk of fluctuating rental income and potential vacancy rates impacting the property’s financial performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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