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 295 m², built in 2018, energy rating B. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This villa features an innovative heated overflow swimming pool with chromotherapy, providing both luxury and relaxation in a picturesque golf setting.
The valuation. The asking price of €1,799,995 sits €346,775 (23.9%) above the fair value of €1,453,220, indicating that the property is overpriced. This discrepancy suggests potential difficulty in achieving a profitable resale in the near term.
Fair value modelled at €1,453,220 from 6 comparable sales in the area. Asking €1,799,995 sits €346,775 (23.9%) above — overpriced versus fair value.
Asking €1,799,995 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €1,367,464 (€4,635/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €1,367,464, adjusted for condition and micro-location, gives a modelled fair value of €1,453,220 (€4,926/m²), a €346,775 (23.9%) gap versus the €1,799,995 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 6a91bb | Subject | €1,799,995 | €6,102 | — | 85 | 72 |
| rua de Moçambique S / N | Active | €1,580,000 | €3,192 | 47.7% | 79 | 73 |
| Lagoa e Carvoeiro · d7a496 | Active | €1,636,000 | €4,305 | 29.4% | 75 | 74 |
| urbanização Presa da Moura | Active | €1,749,000 | €7,257 | 18.9% | 82 | 70 |
| Lagoa e Carvoeiro · 65a5ae | Active | €1,100,000 | €4,000 | 34.4% | 80 | 73 |
| Median comp | €1,608,000 | €4,153 | 31.9% | 80 | 73 |
Short-term vacation rental The 4-bed villa in Lagoa is overpriced at €1,799,995, which presents a significant gap of 23.9% from its fair value of €1,453,220. Despite the strong seasonal demand in the Algarve for vacation rentals, the current pricing may limit the ROI potential with a yield of only 3.6%. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its overpriced nature, as indicated by the fair value analysis showing a 23.9% excess. While the area benefits from a desirable location in a high-demand tourist region, the limited yield of 3.6% suggests that long-term value appreciation may not justify the current price. Family rental The pricing of this villa exceeds fair value by 23.9%, making it a less appealing option for family rentals, where affordability is key. With a decent condition rating of 88/100 and the area being suitable for families, the high entry price could deter potential long-term tenants, impacting rental income stability.
Economic Vulnerability With an economic stability score of 65/100, there is a heightened risk of economic downturn that could impact tenant retention and rental income potential.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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