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.
4-bedroom, 3-bathroom villa of 241 m². Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a sustainable income stream from leased agricultural land currently cultivated with avocado trees, enhancing its investment potential.
The valuation. The asking price of €1,170,000 exceeds the fair value of €997,241 by €172,759, representing a 17.3% premium. This property is overpriced based on current market analysis.
Fair value modelled at €997,241 from 5 comparable sales in the area. Asking €1,170,000 sits €172,759 (17.3%) above — overpriced versus fair value.
Asking €1,170,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €944,657 (€3,920/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €944,657, adjusted for condition and micro-location, gives a modelled fair value of €997,241 (€4,138/m²), a €172,759 (17.3%) gap versus the €1,170,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · cc9a72 | Subject | €1,170,000 | €4,855 | — | 80 | 75 |
| Estômbar e Parchal · 4d416d | Active | €1,390,000 | €5,792 | 19.3% | — | 74 |
| Estômbar e Parchal · 023968 | Active | €1,200,000 | €4,138 | 14.8% | 80 | 73 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 22.5% | 80 | 63 |
| rua Mouzinho de Albuquerque | Active | €365,000 | €2,325 | 52.1% | 80 | 73 |
| Median comp | €1,275,000 | €4,965 | 2.3% | 80 | 73 |
Short-term vacation rental The property's listing price of €1,170,000 represents a gap of 17.3% above its fair value of €997,241, indicating that it is overpriced for investors seeking a quick return on investment. While the gross yield of 7.6% is appealing, the inflated price may hinder potential profitability in a competitive Algarve vacation rental market. Long-term rental At a listed price significantly above its fair value, this villa in Estômbar e Parchal is not an ideal candidate for long-term investment strategies where value appreciation is sought. Though the property has decent condition and a respectable yield, the premium asking price limits its attractiveness to prospective tenants given the local economic landscape. Buy-and-hold The purchase price of €1,170,000 reflects a 17.3% mark-up over fair value, making it less suitable for a buy-and-hold approach focused on long-term equity growth. Investors may consider the potential cash flow from the 7.6% yield; however, the property's overpriced status could impede future value appreciation in an already saturated market. Not ideal for student housing Given that the property is overpriced at €1,170,000, it is not recommended for student housing investment, where affordability is crucial. The gap from fair value and the target demographic's likely budget constraints indicate a misalignment with potential student renters.
Tenant turnover risk The tenant stability score of 70/100 suggests a moderate risk of tenant turnover, which could lead to increased vacancy rates and associated costs for the property.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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