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.
6-bedroom, 4-bathroom house of 665 m², built in 1983, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This property offers the unique opportunity to utilize its substantial land area for diverse development options, including a guest house or tourism project, enhancing its investment appeal.
The valuation. The asking price of €2,200,000 sits €384,842 (14.9%) below the fair value of €2,584,842, indicating that this property is subpriced in the current market. Buy-to-flip angle. The resale strategy aims to capitalize on renovations and market demand, targeting a potential resale price that exceeds the acquisition cost post-renovation. Buy-to-let angle. With short-term vacation rentals gaining traction in the Algarve, this property could generate significant rental income, appealing to seasonal tourists and providing steady cash flow.
Fair value modelled at €2,584,842 from 6 comparable sales in the area. Asking €2,200,000 sits €384,842 (14.9%) below — the upside to fair value.
Asking €2,200,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €2,541,143 (€3,821/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 is below the parish average, reducing 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 €2,541,143, adjusted for condition and micro-location, gives a modelled fair value of €2,584,842 (€3,887/m²), a €384,842 (14.9%) gap versus the €2,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 6a920a | Subject | €2,200,000 | €3,308 | — | 62 | 70 |
| Estômbar e Parchal · 4d416d | Active | €1,390,000 | €5,792 | 75.1% | — | 74 |
| Silves · 023943 | Active | €575,000 | €2,255 | 31.8% | 72 | 80 |
| Silves · 4a7f1c | Active | €785,000 | €2,996 | 9.4% | 80 | 64 |
| Silves · 6fbddb | Active | €380,000 | €2,375 | 28.2% | 80 | 61 |
| Median comp | €680,000 | €2,686 | 18.8% | 80 | 69 |
Short-term vacation rental With a fair value of €2,584,842, the property is subvalorizada by 14.9%, presenting a compelling opportunity for short-term vacation rentals in the tourist-driven Algarve region. Despite a 0% gross yield, the high potential rental income from seasonal tourism could significantly enhance profitability. Long-term rental This property, while currently yielding 0%, is subvalorizada relative to its fair value, suggesting a long-term rental strategy could capture increasing demand from expatriates in the area. The neighbourhood's solid rating of 70/100 supports the likelihood of steady occupancy rates and tenant stability. Buy-and-hold Given that the property is subvalorizada, it presents an attractive buy-and-hold investment opportunity, especially with the strong demand driven by tourism in the Algarve. The fair value suggests potential for capital appreciation over time, making it a strategic addition to an investment portfolio focused on long-term growth.
Economic Sensitivity The property may be vulnerable to economic downturns due to its economic stability score of 60/100, indicating a moderate risk of decreased demand and potential tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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