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.
5-bedroom, 5-bathroom house of 313 m², built in 2001, energy rating C. Located on rua de Vilamar, Porches parish, Lagoa municipality, Faro district. The property boasts a licensed water well, ensuring sustainable water supply, and features solar and photovoltaic panels for energy efficiency, complementing its luxurious design and spacious garden.
The valuation. The asking price of €1,365,000 exceeds the fair value of €599,966 by €765,034 (56.0%). This property is overpriced given the significant discrepancy compared to the established fair market value.
Fair value modelled at €599,966 from the area baseline, adjusted for condition and location. Asking €1,365,000 sits €765,034 (56.0%) above — overpriced versus fair value.
Asking €1,365,000 versus the rua de Vilamar area baseline of €1,187,522 (€3,794/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 72 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua de Vilamar
Area baseline €1,187,522 + condition +€8,803 + location +€53,742 = modelled fair value of €599,966 (€1,917/m²), a €765,034 (56.0%) gap versus the €1,365,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Vilamar | Subject | €1,365,000 | €4,361 | — | 72 | 75 |
| Armação de Pêra · 23f388 | Active | €995,000 | €3,262 | 25.2% | 76 | 65 |
| Lagoa e Carvoeiro · 89366c | Active | €1,895,000 | €5,574 | 27.8% | 80 | 72 |
| Lagoa e Carvoeiro · 23f2ab | Active | €1,400,000 | €4,294 | 1.5% | 71 | 73 |
| Porches · f362ae | Active | €1,750,000 | €5,973 | 37.0% | 73 | 81 |
| Median comp | €1,575,000 | €4,934 | 13.1% | 75 | 73 |
Short-term vacation rental The 5-bed house in Porches, Lagoa, is overpriced at €1,365,000, while the fair value is significantly lower at €599,966, indicating a substantial 56% gap. With a gross yield of only 2.5%, this property does not present a compelling opportunity for short-term vacation rentals in a competitive market driven by tourism. Long-term rental The current listing price of €1,365,000 for the property far exceeds its fair value of €599,966, creating a 56% disparity that suggests it is overpriced. Given the low yield of 2.5%, pursuing long-term rental strategies may not yield favorable returns in a location where rental prices are increasingly sensitive to initial capital outlays. Buy-and-hold Investing in the 5-bed house in Porches at the listed price of €1,365,000 seems ill-advised as it is priced 56% above its fair value of €599,966. This overvaluation, combined with a modest yield of 2.5% and a condition rating of 77/100, challenges the feasibility of a successful buy-and-hold investment strategy in this market.
Economic Vulnerability The economic stability score of 65/100 suggests potential challenges in local market conditions that could impact rental income.
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