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, 3-bathroom country_house of 240 m², built in 1998, energy rating A. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a 4.5-hectare productive Hass avocado orchard under professional management, providing both agricultural productivity and an idyllic scenic backdrop. Unique Amenities: An electric gate with a fast charging point for electric vehicles enhances modern convenience in a rural setting.
The valuation. The asking price of €1,390,000 significantly exceeds the fair value of €288,257, resulting in an overpricing of €1,101,743 (79.3%). This reflects a marked gap between market expectations and valuation standards. Buy-to-flip angle. A buy-to-flip strategy would entail purchasing the property at a much lower price, capitalizing on the unique design and high-quality materials to enhance appeal and targeting a quick resale in the thriving Algarve market. Buy-to-let angle. With an estimated gross yield of 6.4% (~€7,413/month), the property can be leveraged for short-term vacation rentals or long-term leases, tapping into the high demand driven by its proximity to beaches and tourist attractions.
Fair value modelled at €288,257 from the area baseline, adjusted for condition and location. Asking €1,390,000 sits €1,101,743 (79.3%) above — overpriced versus fair value.
Asking €1,390,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €827,280 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 84 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Estômbar e Parchal, Lagoa, Faro
Area baseline €827,280 + condition +€27,375 + location +€17,522 = modelled fair value of €288,257 (€1,201/m²), a €1,101,743 (79.3%) gap versus the €1,390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · be959d | Subject | €1,390,000 | €5,792 | — | 80 | 68 |
| Silves · ba5764 | Active | €1,100,000 | €7,692 | 32.8% | 78 | 68 |
| Silves · ba575d | Active | €1,195,000 | €4,509 | 22.1% | 83 | 76 |
| Lagoa e Carvoeiro · 0dcd9f | Active | €1,250,000 | €4,417 | 23.7% | 78 | 72 |
| Estômbar e Parchal · 6ebb1c | Active | €735,000 | €4,742 | 18.1% | 80 | 74 |
| Median comp | €1,147,500 | €4,626 | 20.1% | 79 | 73 |
Short-term vacation rental The property’s listing at €1,390,000 is significantly above its fair value of €288,257, indicating an overpriced investment that may not yield desirable returns. Even with a gross yield of 6.4%, the high asking price suggests that profit potential is limited in a highly competitive tourist market. Long-term rental While the property is situated in a tourist-centric area near the Algarve coast, its current price exceeds fair value by 79.3%, resulting in an overpriced scenario. The condition rating of 82/100 and neighborhood rating of 68/100 may not justify the elevated price for long-term rental strategies. Family rental At a listing price of €1,390,000, the property is priced 79.3% above its fair value, making it an overpriced option for families seeking rental accommodations. Although the amenities and proximity to beaches are attractive, the excessive cost may deter potential tenants from committing to a long-term lease.
Economic Vulnerability The economic stability score of 55/100 indicates a medium risk due to potential fluctuations, which could affect tenant retention and property 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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