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 150 m², built in 1981, energy rating E. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features two terraces offering a panoramic view, making it ideal for outdoor leisure in a tranquil Algarve setting.
The valuation. The asking price of €449,000 is significantly above the fair value of €317,405, placing it at a premium of €131,595 (41.5%). This property is therefore considered overpriced. Buy-to-flip angle. With strategic renovations to enhance its appeal, focusing on modern aesthetics and comfort, there’s potential to flip this property for a substantial profit in the rising Algarve market. Buy-to-let angle. The estimated gross rental income of €2,657 per month translates to a gross yield of 7.1%, making this property a compelling option for long-term rental in a tourism-driven area.
Fair value modelled at €317,405 from 6 comparable sales in the area. Asking €449,000 sits €131,595 (41.5%) above — overpriced versus fair value.
Asking €449,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €282,922 (€1,886/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €282,922, adjusted for condition and micro-location, gives a modelled fair value of €317,405 (€2,116/m²), a €131,595 (41.5%) gap versus the €449,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 875161 | Subject | €449,000 | €2,993 | — | 72 | 72 |
| urbanização António Joaquim Duarte, 23 | Active | €390,000 | €2,708 | 9.5% | 68 | 74 |
| rua Cidade de Gôa | Active | €649,500 | €1,986 | 33.6% | 63 | 74 |
| rua Capitão Teófilo Duarte | Active | €290,000 | €1,676 | 44.0% | 55 | 65 |
| Portimão · 956a7a | Active | €725,000 | €948 | 68.3% | 74 | 72 |
| Median comp | €519,750 | €1,831 | 38.8% | 66 | 73 |
Short-term vacation rental Given the Algarve region's strong tourism appeal, a 7.1% gross yield may seem attractive; however, the property is overpriced at €449,000, significantly exceeding its fair value of €317,405. The potential for generating short-term rental income is overshadowed by the higher entry price, limiting returns against market expectations. Long-term rental While long-term rental could provide stable cash flow, the property's listing at €449,000 places it 41.5% above its fair value, which diminishes the overall investment potential. With a condition rating of 75/100, maintenance costs may further eat into the already unattractive yield calculated at current prices. Buy-and-hold Investing in this buy-and-hold strategy is questionable as the property’s fair value of €317,405 signals that it is overpriced by 41.5%, which may deter future appreciation. The reliance on tourism for economic stability adds uncertainty, making it a less attractive long-term asset. Not ideal for Student housing The property’s size and configuration are not conducive to meeting the needs of student housing, and it is overpriced relative to its fair value, reducing its appeal in this market segment. Furthermore, the neighborhood ratings do not support the necessary demand for a competitive student rental market. Not ideal for Luxury market Situated in a market that traditionally benefits from tourism, this property does not meet luxury standards and, at €449,000, is priced above its fair value. The potential clientele looking for luxury options would likely find better alternatives in the area, making this an unsuitable choice.
Economic Vulnerability The economic stability score of 65/100 indicates potential fluctuations in market demand that could impact 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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