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.
10-bedroom, 6-bathroom country_estate of 795 m², energy rating C. Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: This country estate includes a dedicated spa area with hot tub and an exclusive private tennis court discreetly integrated within the lush landscaped gardens.
The valuation. The asking price of €10,500,000 is significantly above the fair value of €4,474,871, which results in a premium of €6,025,129 or 134.6%. This property is overpriced.
Fair value modelled at €4,474,871 from 6 comparable sales in the area. Asking €10,500,000 sits €6,025,129 (134.6%) above — overpriced versus fair value.
Asking €10,500,000 versus the Porches, Lagoa, Faro area baseline of €3,882,418 (€4,884/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 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 €3,882,418, adjusted for condition and micro-location, gives a modelled fair value of €4,474,871 (€5,629/m²), a €6,025,129 (134.6%) gap versus the €10,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Porches · cc99a5 | Subject | €10,500,000 | €13,208 | — | 85 | 71 |
| Lagoa e Carvoeiro · 89366c | Active | €1,895,000 | €5,574 | 57.8% | 80 | 72 |
| rua de Vilamar | Active | €1,365,000 | €4,361 | 67.0% | 72 | 75 |
| Lagoa e Carvoeiro · 6ebb84 | Active | €1,795,000 | €5,717 | 56.7% | 75 | 75 |
| Lagoa e Carvoeiro · 6c7a4c | Active | €2,990,000 | €7,456 | 43.5% | 92 | 68 |
| Median comp | €1,845,000 | €5,646 | 57.3% | 78 | 74 |
Short-term vacation rental This property is overpriced by 134.6% compared to its fair value of €4,474,871, making it a poor investment for short-term vacation rentals in a tourist-driven market. With a gross yield of 0%, the financial fundamentals do not support the high asking price, despite the desirable location in the Algarve. Long-term rental The significant gap from fair value indicates that this property is not a viable option for long-term rental investments, as the investment return does not justify the listing price of €10,500,000. Given the condition score of 89/100, while it may attract tenants, the rental income potential is severely impacted by its inflated valuation. Buy-and-hold As a buy-and-hold strategy, this property is not positioned for favorable returns, being overpriced at €10,500,000 relative to its fair value of €4,474,871. Investors should be cautious, as the lack of yield and the high initial cost could impede long-term capital appreciation in a fluctuating market. Not ideal for student housing The property’s size and location make it less suitable for student housing, particularly given its high price point. With a neighborhood score of 71/100, the demand for this type of accommodation is likely limited, further complicating any potential investment strategy.
Economic and Tenant Instability Risk With both economic stability and tenant stability scores at 65/100, there is a heightened risk of fluctuating income and potential vacancies, as moderate scores indicate uncertainty in market conditions and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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