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, 3-bathroom house of 335 m², energy rating B. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This property includes a breathtaking artificial lake with a private beach and is surrounded by over four hectares of diverse landscaping and a unique ecosystem featuring 150 species of exotic birds.
The valuation. The asking price of €4,500,000 is significantly above the fair value of €1,575,922, representing a disparity of €2,924,078 (185.5%). This property is notably overpriced based on market conditions.
Fair value modelled at €1,575,922 from 6 comparable sales in the area. Asking €4,500,000 sits €2,924,078 (185.5%) above — overpriced versus fair value.
Asking €4,500,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €1,578,959 (€4,713/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €1,578,959, adjusted for condition and micro-location, gives a modelled fair value of €1,575,922 (€4,704/m²), a €2,924,078 (185.5%) gap versus the €4,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 3a70fa | Subject | €4,500,000 | €13,433 | — | 78 | 69 |
| urbanização Cerro São Miguel Estação de Silves | Active | €770,000 | €4,010 | 70.1% | 75 | 75 |
| via Donkey Carts | Active | €895,000 | €3,416 | 74.6% | 78 | 64 |
| Estômbar e Parchal · be959d | Active | €1,390,000 | €5,792 | 56.9% | 80 | 68 |
| Silves · 19f440 | Active | €1,200,000 | €4,615 | 65.6% | 82 | 66 |
| Median comp | €1,047,500 | €4,313 | 67.9% | 79 | 67 |
Short-term vacation rental Given the proximity to the coast in the Algarve, the property could theoretically appeal to short-term vacation rentals; however, this potential is eclipsed by its excessive price, which leaves no room for profit. The current yield of 0% gross further underscores that, as an investment, it does not present a viable option in this context. Buy-and-hold Holding onto this property for long-term appreciation seems impractical, as the current asking price exceeds fair value by 185.5%, suggesting that it would take an unreasonably long time to see any return on investment. The neighborhood score of 69/100 indicates some appeal, yet it does not justify the inflated price tag. Long-term rental Investing in this property for long-term rental purposes is not advisable due to its high price compared to fair value, resulting in an unfeasible investment strategy. The lack of yield and relatively average neighborhood conditions further indicate that long-term rental would fail to provide satisfactory returns at this price point.
Economic Vulnerability The economic stability score of 55/100 indicates a risk of fluctuations in the local economy that could affect rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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