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, 2-bathroom house of 225 m². Located Porches parish, Lagoa municipality, Faro district. Noteworthy Features: The landscaped 4,500 m² plot includes a charming garden house overlooking a small stream, enhancing the property's tranquil rural ambiance and providing a unique outdoor retreat.
The valuation. The asking price of €1,695,000 sits significantly above the fair value of €983,129, representing an overvaluation of €711,871 (72.4%). This property is currently overpriced in the real estate market.
Fair value modelled at €1,019,737 from 6 comparable sales in the area. Asking €1,495,000 sits €475,263 (46.6%) above — overpriced versus fair value.
Asking €1,495,000 versus the estrada do Quintão, 1 area baseline of €841,047 (€3,738/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €841,047, adjusted for condition and micro-location, gives a modelled fair value of €1,019,737 (€4,532/m²), a €475,263 (46.6%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Quintão, 1 | Subject | €1,495,000 | €6,644 | — | 82 | 68 |
| Alcantarilha e Pêra · b329ea | Active | €775,000 | €4,532 | 31.8% | 82 | 71 |
| Alcantarilha e Pêra · 831419 | Active | €665,000 | €4,433 | 33.3% | 75 | 73 |
| Alcantarilha e Pêra · 00198e | Active | €920,000 | €5,750 | 13.5% | 70 | 71 |
| Alcantarilha e Pêra · 0acc10 | Active | €775,000 | €4,532 | 31.8% | 85 | 70 |
| Median comp | €775,000 | €4,532 | 31.8% | 79 | 71 |
Short-term vacation rental Given its location in the Algarve, a popular tourist region near beaches, the property could appeal to vacationers despite its high price point. However, with a gross yield of only 1.6%, the investment lacks attractive returns for short-term rental strategies. Long-term rental While the proximity to beaches increases rental demand, the significant gap to fair value suggests that this property is overpriced for long-term rental purposes. The low yield of 1.6% indicates limited potential for positive cash flow, making it a less attractive long-term investment. Buy-and-hold In the context of a buy-and-hold strategy, this property's status as overpriced at €1,695,000 means that long-term appreciation might not compensate for the current high entry cost. The fair value of €983,129 reveals a troubling disparity, diminishing the investment's appeal in a competitive market. Not ideal for student housing This property is ill-suited for student housing, as the high purchase price does not align with the typically moderate yields associated with such rentals. Therefore, investing here would likely yield unfavorable returns given the target tenant profile. Not ideal for luxury market Positioned above fair value, this property does not meet the luxury market's expectations in terms of pricing and value perception. Hence, despite its appealing characteristics, it is unlikely to attract luxury buyers or renters effectively. Not ideal for industrial investments This property’s classification as residential makes it entirely unsuitable for industrial investments, regardless of location advantages. Investing in such a segment would miss the market's fundamental requirements for industrial use.
[Economic Volatility] With an economic stability score of 65/100, there is a significant risk of fluctuating tenant demand and potential revenue instability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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