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, 2-bathroom apartment of 81 m², built in 1988, energy rating C. Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment includes a private garden, enhancing outdoor living space and exclusive access, while its double-glazing reduces noise and increases energy efficiency for optimal comfort.
The valuation. The asking price of €395,000 is significantly above the fair value of €312,024, representing an excessive premium of €82,976 (26.6%). This suggests the property is overpriced and may deter potential buyers.
Fair value modelled at €312,024 from 6 comparable sales in the area. Asking €395,000 sits €82,976 (26.6%) above — overpriced versus fair value.
Asking €395,000 versus the Porches, Lagoa, Faro area baseline of €292,482 (€3,611/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 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 €292,482, adjusted for condition and micro-location, gives a modelled fair value of €312,024 (€3,852/m²), a €82,976 (26.6%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · 38b6f8 | Subject | €395,000 | €4,877 | — | 75 | 70 |
| rua do Barlavento | Active | €440,000 | €2,750 | 43.6% | 72 | 74 |
| rua das Caravelas | Active | €285,000 | €2,767 | 43.3% | 76 | 72 |
| rua do Alentejo | Active | €515,000 | €3,787 | 22.3% | 72 | 71 |
| rua Vila Nossa Senhora da Rocha, 2D | Active | €500,000 | €5,000 | 2.5% | 80 | 73 |
| Median comp | €470,000 | €3,277 | 32.8% | 74 | 73 |
Short-term vacation rental Due to its prime location in a key tourist destination, this property is likely to generate some interest for vacation rentals. However, with a fair value of €312,024, the current listing price of €395,000 suggests it is overpriced, potentially limiting the yield effectiveness of short-term leasing at just 3.2% gross. Long-term rental While the property may attract long-term tenants given the safe environment typical of the Algarve, it is important to note that its pricing is above its fair value by 26.6%. This overpricing raises concerns about achievable rental returns in a seasonal market reliant on tourism, potentially capping long-term rental yield at a modest level. Buy-and-hold Investing in this property as a buy-and-hold strategy may not be favorable, considering its 26.6% gap above fair value. The combination of an overpriced listing and modest yield of 3.2% does not provide a compelling case for long-term appreciation prospects in a tourism-driven market.
Economic Vulnerability The combined score of 65/100 for economic stability and 70/100 for tenant stability indicates a moderate risk due to potential fluctuations in the local economy affecting tenant retention and rent stability.
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