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, 3-bathroom townhouse of 121 m², built in 1990. Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: The townhouse includes a private roof terrace with ocean views, generous shade sails for comfort, and a versatile ground-floor terrace that can serve as parking space.
The valuation. The asking price of €595,000 is significantly above the fair value of €483,583, creating a discrepancy of €111,417 (23.0%). This property is therefore considered overpriced.
Fair value modelled at €483,583 from 4 comparable sales in the area. Asking €595,000 sits €111,417 (23.0%) above — overpriced versus fair value.
Asking €595,000 versus the Porches, Lagoa, Faro area baseline of €454,744 (€3,758/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €454,744, adjusted for condition and micro-location, gives a modelled fair value of €483,583 (€3,997/m²), a €111,417 (23.0%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · a803e7 | Subject | €595,000 | €4,917 | — | 74 | 72 |
| rua da Igreja, 6 | Active | €425,000 | €5,743 | 16.8% | 84 | 72 |
| Porches · 8ee83f | Active | €540,000 | €3,699 | 24.8% | 80 | 71 |
| Lagoa e Carvoeiro · 23f2ab | Active | €1,400,000 | €4,294 | 12.7% | 71 | 73 |
| rua Encosta dos Alporchinhos, 1 | Active | €490,000 | €2,526 | 48.6% | 70 | 79 |
| Median comp | €515,000 | €3,997 | 18.7% | 76 | 73 |
Short-term vacation rental\nGiven the Algarve's reputation for safety and leisure, the property's potential for short-term rental income is challenged by its current listing price, which is 23.0% above fair value. With a gross yield of only 3.3%, this townhouse may not provide the attractive returns typically sought after in vacation rentals, making it a less viable option in the current market.\n\nBuy-and-hold\nInvesting in this property as a buy-and-hold strategy is not ideal, as its value is currently overpriced at €595,000 compared to a fair value of €483,583. With limited growth potential indicated by local market conditions, this townhouse may not appreciate sufficiently to justify its inflated listing price.\n\nLong-term rental\nWhile the location in Porches could appeal for long-term rentals, the gross yield of 3.3% suggests that the townhouse is overpriced, limiting cash flow potential. The relatively high price compared to fair value means this property may not meet the criteria for a strong long-term rental investment in the current climate.
Economic Vulnerability The economic stability score of 65/100 indicates potential volatility in the local market, which could affect tenant retention and rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
