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, 3-bathroom house of 246 m², built in 1999, energy rating E. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features a spacious outdoor area with a wood-fired oven and an additional support building, offering versatility for leisure and potential for guest accommodation.
The valuation. The asking price of €810,000 is significantly below the fair value of €1,243,461, representing a discount of €433,461 or 34.9%. This property is, therefore, underpriced. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the immediate difference between the asking price and fair value, enabling potential resale at a profit in the thriving Algarve market. Buy-to-let angle. With a gross yield of 3.9%, this property could generate €2,632 per month in rental income through short-term vacation rentals, appealing to tourists seeking luxury accommodations in the region.
Fair value modelled at €1,243,461 from 6 comparable sales in the area. Asking €810,000 sits €433,461 (34.9%) below — the upside to fair value.
Asking €810,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €1,183,215 (€4,810/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €1,183,215, adjusted for condition and micro-location, gives a modelled fair value of €1,243,461 (€5,055/m²), a €433,461 (34.9%) gap versus the €810,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 6a94a9 | Subject | €810,000 | €3,293 | — | 78 | 73 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 80.6% | 80 | 63 |
| Estômbar e Parchal · 28b841 | Active | €795,000 | €4,162 | 26.4% | 75 | 71 |
| Estômbar e Parchal · 023968 | Active | €1,200,000 | €4,138 | 25.7% | 80 | 73 |
| Estômbar e Parchal · 956c70 | Active | €1,350,000 | €5,947 | 80.6% | 78 | 67 |
| Median comp | €1,275,000 | €5,055 | 53.5% | 79 | 69 |
Short-term vacation rental The property presents an attractive opportunity for short-term vacation rentals, with the potential for a 3.9% gross yield that can outperform traditional rental strategies. Especially in the Algarve's tourist region, the fair value indicates a significant gap of 34.9% above the current listing price, suggesting strong demand for rental accommodation. Buy-and-hold Investing in this property as a buy-and-hold strategy is appealing, given its fair value significantly exceeds the purchase price at €810,000. With a neighborhood rating of 73/100 and a solid overall property condition of 83/100, this asset is positioned for long-term appreciation in a desirable area. Family rental The property serves well as a family rental, supported by favorable neighborhood conditions and a competitive yield of 3.9%. Its valuation reflects a 34.9% gap to fair value, indicating its potential to attract long-term tenants seeking a quality home in the Algarve region.
Economic Vulnerability With an economic stability score of 65/100, there may be fluctuations in the local economy that could negatively impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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