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.
5-bedroom, 2-bathroom house of 271 m², built in 2020, energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property features an AL license for tourist rentals, making it a lucrative investment opportunity in a desirable area.
The valuation. The asking price of €499,000 is significantly below the fair value of €705,729, representing a compelling opportunity for investors as it is subvalued by €206,729 (29.3%). Buy-to-flip angle. This property can be renovated and marketed to high-demand vacation buyers, enabling a profitable resale well above the acquisition price. Buy-to-let angle. With an estimated gross yield of 13.3% and potential rental income of approximately €5,531/month, it is well-positioned for consistent cash flow through short-term vacation rentals or family leasing opportunities.
Fair value modelled at €705,729 from 6 comparable sales in the area. Asking €499,000 sits €206,729 (29.3%) below — the upside to fair value.
Asking €499,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €689,816 (€2,545/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 below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €689,816, adjusted for condition and micro-location, gives a modelled fair value of €705,729 (€2,604/m²), a €206,729 (29.3%) gap versus the €499,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · a803f5 | Subject | €499,000 | €1,841 | — | 72 | 73 |
| Estômbar e Parchal · 875161 | Active | €449,000 | €2,993 | 62.6% | 72 | 72 |
| rua Padre Antão S / N | Active | €325,000 | €1,693 | 8.1% | 65 | 73 |
| Estômbar e Parchal · f5ead8 | Active | €485,000 | €2,401 | 30.4% | 68 | 76 |
| Estômbar e Parchal · f5e99e | Active | €450,000 | €2,500 | 35.8% | 82 | 64 |
| Median comp | €449,500 | €2,451 | 33.1% | 70 | 73 |
Short-term vacation rental This property is well-positioned to capitalize on the Algarve's tourism, presenting a compelling opportunity given its fair value of €705,729 against a listing price of €499,000, indicating a gap of 29.3%. With a gross yield of 13.3%, the investment aligns perfectly with high-demand short-term rental strategies in a low-crime area. Buy-and-hold A buy-and-hold strategy is favorable for this property due to its substantial fair value, suggesting long-term appreciation potential while currently being listed well below this value. The decent condition score of 77/100 and the location's attractiveness for renters underscore the likelihood of sustained demand and rental income. Family rental The property’s size and neighborhood quality make it an ideal candidate for family rentals, especially given the fair value that highlights its potential for capital growth. With a robust gross yield of 13.3% and a supportive community environment, this investment is positioned to attract stable, long-term tenants looking for spacious accommodations. Not ideal for: Student housing, Industrial rental, Agricultural investment
Economic Dependency Risk: With an economic stability score of 70/100, there is a significant risk that economic downturns could negatively impact property demand and rental income stability. Tenant Turnover Risk: Although the tenant stability score is 75/100, a moderate risk of turnover still exists, potentially leading to periods of vacancy that could affect cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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