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 230 m², built in 1988, energy rating D. Located on urbanização das Sesmarias, 127, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts over 100 m² of outdoor terrace space, providing extensive areas for outdoor entertainment, alongside a spectacular pool that complements the elegant master suite.
The valuation. The asking price of €1,090,000 is notably below the fair value of €1,238,531, representing an attractive discount of €148,531 (12.0%). This suggests that the property is underpriced and presents a valuable opportunity. Buy-to-flip angle. The strategy centers on renovating the villa to enhance its appeal and market value, maximizing returns through resale in a desirable coastal market. This could potentially yield significant profits given the current gap to fair value. Buy-to-let angle. The rental income strategy aims to capitalize on a gross yield of 3.6%, estimated at €3,270 per month, appealing to both short-term vacationers and long-term renters in the attractive Algarve region.
Fair value modelled at €1,238,531 from 6 comparable sales in the area. Asking €1,090,000 sits €148,531 (12.0%) below — the upside to fair value.
Asking €1,090,000 versus the urbanização das Sesmarias, 127 area baseline of €1,017,709 (€4,425/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,017,709, adjusted for condition and micro-location, gives a modelled fair value of €1,238,531 (€5,385/m²), a €148,531 (12.0%) gap versus the €1,090,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização das Sesmarias, 127 | Subject | €1,090,000 | €4,739 | — | 82 | 74 |
| Estômbar e Parchal · 9385b6 | Active | €1,299,000 | €5,697 | 20.2% | 76 | 71 |
| Estômbar e Parchal · 9114d1 | Active | €1,050,000 | €5,072 | 7.0% | 70 | 70 |
| estrada do Farol S / N | Active | €1,495,000 | €3,279 | 30.8% | 84 | 64 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 41.0% | 80 | 75 |
| Median comp | €1,374,500 | €5,385 | 13.6% | 78 | 71 |
Short-term vacation rental The 4-bed villa in Estômbar e Parchal is positioned favorably for short-term vacation rentals, particularly given its prime location near the coastal Algarve, appealing to tourists and expats. With a gross yield of 3.6% and a fair value gap of 12.0%, this property stands to generate substantial rental income while appreciating in value over time. Long-term rental This property presents a strong opportunity for long-term rental investment, as the area boasts low crime rates and good amenities, attracting quality tenants. The stable neighborhood rating of 74/100 further reinforces the potential for consistent rental demand and income generation. Buy-and-hold Investing in this 4-bed villa as a buy-and-hold strategy is compelling, with a fair value indicating it is below market pricing. Given the attractive 3.6% gross yield and the solid local property market, this investment is poised for long-term capital appreciation while producing ongoing rental returns.
Economic Volatility Risk The economic stability score of 65/100 indicates a medium risk, suggesting potential fluctuations in market conditions that could affect property value or rental 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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