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, 2-bathroom apartment of 170 m² on the 2nd floor, built in 2011, energy rating A. Located on rua da Bela Vista, 1C, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts a private terrace with panoramic river views, enhancing its luxury appeal and providing an exceptional space for outdoor relaxation and entertaining. Additional Context: The efficient floor plan creates a harmonious flow between spacious, sunlit rooms. Unique Selling Point: Occupying the top floor in a low-density building ensures unparalleled privacy and tranquility.
The valuation. The asking price of €399,000 is significantly below the fair value of €476,395, representing a discount of €77,395 (16.2%). This property is thus underpriced compared to the market's expectations. Buy-to-flip angle. The property can be quickly refurbished to enhance its appeal and is likely to attract buyers interested in high-quality finishes, thus capitalizing on current market demand for modern aesthetics. Buy-to-let angle. The strong tourist presence in Algarve makes this property ideal for short-term vacation rentals, potentially generating substantial rental income during peak seasons, despite the current estimated yield of 0%.
Fair value modelled at €476,395 from 6 comparable sales in the area. Asking €399,000 sits €77,395 (16.2%) below — the upside to fair value.
Asking €399,000 versus the rua da Bela Vista, 1C area baseline of €419,850 (€2,470/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €419,850, adjusted for condition and micro-location, gives a modelled fair value of €476,395 (€2,802/m²), a €77,395 (16.2%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Bela Vista, 1C | Subject | €399,000 | €2,347 | — | 80 | 73 |
| Portimão · 6228cd | Active | €420,000 | €2,039 | 13.1% | 75 | 68 |
| Portimão · 1f3429 | Active | €565,000 | €3,038 | 29.4% | 73 | 77 |
| Portimão · fb292b | Active | €560,000 | €2,605 | 11.0% | 78 | 71 |
| Estômbar e Parchal · 62721f | Active | €305,000 | €3,211 | 36.8% | 76 | 65 |
| Median comp | €490,000 | €2,822 | 20.2% | 76 | 70 |
Short-term vacation rental This property presents an attractive opportunity for a short-term vacation rental given its location in tourist-heavy Algarve, enhancing the potential for high occupancy rates. Priced at €399,000, it is subvalued compared to the fair value of €476,395, offering immediate equity and positioning for strong rental income during peak seasons. Buy-and-hold Acquiring this apartment for a buy-and-hold strategy makes sense due to the growth potential in an economically stable region driven by tourism. With a fair value gap of 16.2%, this property is reasonably priced to appreciate over time, enhancing overall investment returns. Family rental Targeting this apartment for family rentals aligns well with the safe and amenity-rich environment of Lagoa, apt for long-term tenants. With its fair value significantly exceeding the listing price, the investment presents sound income stability and future valuation growth.
Economic and Tenant Instability With both Economic stability and Tenant stability at 65/100, there is a significant risk of fluctuating income due to potential job market variability and tenant turnover challenges.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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