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, 0-bathroom apartment of 105 m², built in 2009, energy rating B. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy features: The private rooftop terrace includes a large pergola and pre-installation for an outdoor kitchen, enhancing the space for gatherings and entertainment. Condition notes: Limited decorative furniture on balconies suggests enhancement potential.
The valuation. The asking price of €420,000 is significantly above fair value, which is assessed at €291,975, resulting in an overpricing of €128,025 (43.8%). Overall, the property is considered overpriced.
Fair value modelled at €291,975 from 6 comparable sales in the area. Asking €420,000 sits €128,025 (43.8%) above — overpriced versus fair value.
Asking €420,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €291,756 (€2,779/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €291,756, adjusted for condition and micro-location, gives a modelled fair value of €291,975 (€2,781/m²), a €128,025 (43.8%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 83432a | Subject | €420,000 | €4,000 | — | 72 | 67 |
| Portimão · 65a47c | Active | €360,000 | €2,571 | 35.7% | 70 | 72 |
| rua da Raminha, 17 | Active | €299,000 | €2,990 | 25.2% | 65 | 68 |
| rua Francisco Alvo, 5 | Active | €435,000 | €2,277 | 43.1% | 78 | 75 |
| Portimão · 8ee91c | Active | €479,000 | €2,508 | 37.3% | 75 | 71 |
| Median comp | €397,500 | €2,540 | 36.5% | 73 | 72 |
Short-term vacation rental This property is overpriced by 43.8% compared to its fair value, which limits its potential for generating adequate returns in the short-term vacation rental market. With a gross yield of only 3.4%, the high purchase price diminishes the profitability potential that is crucial in a seasonally-driven tourist market like Algarve. Long-term rental As the property is significantly overpriced, it presents challenges in achieving a competitive rental yield compared to market norms, where rental rates should align more closely with the fair value. The 3.4% yield is insufficient, especially given the neighborhood's moderate amenities and average tenant quality ratings. Buy-and-hold The excessive price point of this apartment compared to its fair value leads to concerns about long-term appreciation in a region sensitive to economic fluctuations and seasonal demand. Investors should be wary, as the high initial investment may not yield favorable returns over time in the current market context. Not ideal for: Student housing, Luxury market, Industrial investment
Economic and Tenant Risk: With an economic stability score of 60 and a tenant stability score of 60, there is a heightened risk of potential vacancies and fluctuating rental income due to inadequate demand and tenant retention challenges.
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