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.
5-bedroom, 2-bathroom house of 230 m², energy rating E. Located on rua Rio Arade, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes two large terraces that provide unobstructed river views, enhancing outdoor living and relaxation opportunities in a tranquil setting. Condition Notes: Several rooms exhibit clutter and unfinished renovations, presenting a canvas for personal customization.
The valuation. The asking price of €590,000 is significantly above fair value by €110,020 (22.9%). This indicates the property is overpriced compared to its assessed worth of €479,980.
Fair value modelled at €479,980 from 6 comparable sales in the area. Asking €590,000 sits €110,020 (22.9%) above — overpriced versus fair value.
Asking €590,000 versus the rua Rio Arade area baseline of €621,474 (€2,702/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 49/100 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 €621,474, adjusted for condition and micro-location, gives a modelled fair value of €479,980 (€2,087/m²), a €110,020 (22.9%) gap versus the €590,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Rio Arade | Subject | €590,000 | €2,565 | — | 52 | 70 |
| rua Mouzinho de Albuquerque, 25 | Active | €420,000 | €1,313 | 48.8% | 38 | 69 |
| rua Capitão Teófilo Duarte | Active | €290,000 | €1,676 | 34.7% | 55 | 65 |
| rua Mouzinho de Albuquerque, 61 | Active | €385,000 | €2,188 | 14.7% | 30 | 63 |
| rua Projectada À Caldeira do Moinho | Active | €550,000 | €2,301 | 10.3% | — | 67 |
| Median comp | €402,500 | €1,932 | 24.7% | 38 | 66 |
Short-term vacation rental The property has a gross yield of 5.2%, but with it being overpriced by 22.9%, the potential for profit diminishes significantly. Given the condition rating of 49/100, it may not appeal to target vacation rental guests seeking quality accommodations. Long-term rental While the long-term rental market in the Algarve can be lucrative, this property’s fair value of €479,980 suggests it is overpriced at €590,000, limiting its attractiveness for sustained investment. The neighborhood rating of 70/100 indicates a reasonable area, but the high price could deter prospective long-term tenants. Buy-and-hold Investing with a buy-and-hold strategy may not be favorable given the property's fair market value and its current overpriced status. The yield of 5.2% does not compensate for the 22.9% gap, suggesting weaker appreciation potential in the current market climate.
Economic vulnerability With an economic stability score of 60/100, there is a risk that regional economic downturns could impact tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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