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.
2-bedroom, 1-bathroom apartment of 100 m² on the 1st floor. Located on rua Vila Nossa Senhora da Rocha, 2D, Porches parish, Lagoa municipality, Faro district. This apartment features an expansive outdoor terrace with stunning garden views, complemented by access to three communal swimming pools within a serene 10-hectare landscape.
The valuation. The asking price of €500,000 sits significantly above the fair value of €385,215, exceeding it by €114,785 (29.8%). This property is judged to be overpriced.
Fair value modelled at €385,215 from 6 comparable sales in the area. Asking €500,000 sits €114,785 (29.8%) above — overpriced versus fair value.
Asking €500,000 versus the rua Vila Nossa Senhora da Rocha, 2D area baseline of €350,293 (€3,503/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 €350,293, adjusted for condition and micro-location, gives a modelled fair value of €385,215 (€3,852/m²), a €114,785 (29.8%) gap versus the €500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Vila Nossa Senhora da Rocha, 2D | Subject | €500,000 | €5,000 | — | 80 | 73 |
| rua do Alentejo | Active | €515,000 | €3,787 | 24.3% | 72 | 71 |
| Armação de Pêra · 15e397 | Active | €380,000 | €3,918 | 21.6% | 73 | 66 |
| Armação de Pêra · b7c2bb | Active | €390,000 | €6,094 | 21.9% | 75 | 70 |
| rua do Barlavento | Active | €440,000 | €2,750 | 45.0% | 72 | 74 |
| Median comp | €415,000 | €3,853 | 22.9% | 73 | 71 |
Short-term vacation rental The potential yield of 2.6% gross suggests that this property may not generate sufficient returns to justify its price point of €500,000, especially given that it is overpriced by 29.8% compared to fair value. With a fair value of €385,215, the property’s attractiveness as a short-term rental is hindered by its elevated cost. Long-term rental At €500,000, this property is overpriced by 29.8%, resulting in a low gross yield of 2.6%, which does not align with ideal long-term rental investment expectations. This pricing pressure diminishes the overall feasibility for securing reliable, long-term tenants despite the stable environment of the Algarve region. Buy-and-hold With current pricing at €500,000, which is 29.8% above fair value, the expected gross yield of 2.6% makes this a less attractive buy-and-hold opportunity. Investors must consider the prolonged timeframe required to achieve any meaningful returns, as the initial investment is critically inflated. Not ideal for: Student housing, Luxury market Given its location and pricing dynamics, this property is overvalued at €500,000, making it a poor fit for both student housing and the luxury market. The alignment of property features and valuation fails to meet the criteria for these demographic segments, limiting potential success.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk, potentially affecting the demand and rental income of the property in fluctuating market conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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