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, 3-bathroom townhouse of 156 m², built in 2006, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Property Features: This townhouse boasts direct access to the communal pool and panoramic views of the Vale da Pinta golf course from multiple terraces, enhancing outdoor living opportunities.
The valuation. The asking price of €545,000 is significantly above the fair value of €473,251, marking an overpricing of €71,749 (15.2%). Investors should be cautious as this property fails to offer a favorable valuation. Buy-to-flip angle. A buy-to-flip strategy may involve minor renovations to enhance aesthetic appeal, paving the way for a potential resale at a higher price in a tourist-centric market. This could help recoup some of the valuation gap. Buy-to-let angle. The estimated rental income of €1,635 per month translates to a gross yield of 3.6%, which could appeal to long-term investors in the tourist-heavy Algarve region, despite the overall market being less favorable for sustained appreciation.
Fair value modelled at €654,545 from 5 comparable sales in the area. Asking €545,000 sits €109,545 (16.7%) below — the upside to fair value.
Asking €545,000 versus the rua do Pestana Golf Resort S / N area baseline of €599,539 (€3,843/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €599,539, adjusted for condition and micro-location, gives a modelled fair value of €654,545 (€4,196/m²), a €109,545 (16.7%) gap versus the €545,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Pestana Golf Resort S / N | Subject | €545,000 | €3,494 | — | 74 | 70 |
| Lagoa e Carvoeiro · 57f9c7 | Active | €899,000 | €4,241 | 21.4% | 80 | 71 |
| urbanização das Sesmarias, 106 | Active | €875,000 | €4,464 | 27.8% | 75 | 73 |
| Lagoa e Carvoeiro · f10b11 | Active | €1,200,000 | €4,196 | 20.1% | 75 | 73 |
| Lagoa e Carvoeiro · 56a29d | Active | €1,200,000 | €4,196 | 20.1% | 72 | 71 |
| Median comp | €1,049,500 | €4,219 | 20.7% | 75 | 72 |
Short-term vacation rental Given the estimated fair value of €473,251, the listing price of €545,000 suggests that this townhouse is overpriced by 15.2%, which undermines potential profitability in the short-term vacation rental market. With a gross yield of 3.6%, the financial return may not justify the initial investment in this tourist-centric location. Buy-and-hold While the Algarve region is known for its tourism, the property’s listing price exceeds its fair value by 15.2%, indicating it is overpriced and may not provide favorable long-term appreciation. The current condition rating of 74/100 suggests that ongoing maintenance costs could further diminish the investment’s profitability. Family rental Although family rentals could benefit from the location's tourist appeal, the townhouse's price is 15.2% above fair value, indicating that it is overpriced and might hinder cash flow. Additionally, the neighbourhood's rating of 70/100 raises concerns about tenant quality, impacting the viability of long-term rental success.
Economic Instability Risk The property's economic stability score of 50 indicates a potential for financial volatility, which may jeopardize future cash flows.
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