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, 4-bathroom villa of 240 m², built in 1944, energy rating A. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. This villa features a south-facing swimming pool with expansive sunset views and is set on a farm with significant agricultural potential, including a rustic area of 6,539 hectares.
The valuation. The asking price of €1,170,000 is underpriced compared to the fair value of €1,331,298, presenting a discount of €161,298, or 12.1%. This indicates a compelling opportunity for investors looking to capitalize on equity growth.
Fair value modelled at €1,331,298 from 6 comparable sales in the area. Asking €1,170,000 sits €161,298 (12.1%) below — the upside to fair value.
Asking €1,170,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €1,267,854 (€5,283/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,267,854, adjusted for condition and micro-location, gives a modelled fair value of €1,331,298 (€5,547/m²), a €161,298 (12.1%) gap versus the €1,170,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 800209 | Subject | €1,170,000 | €4,875 | — | 80 | 70 |
| Lagoa e Carvoeiro · 0dcd9f | Active | €1,250,000 | €4,417 | 9.4% | 78 | 72 |
| Lagoa e Carvoeiro · f46b6d | Active | €1,990,000 | €9,171 | 88.1% | 85 | 70 |
| Estômbar e Parchal · be959d | Active | €1,390,000 | €5,792 | 18.8% | 80 | 68 |
| Estômbar e Parchal · 19085a | Active | €2,180,000 | €5,547 | 13.8% | 81 | 73 |
| Median comp | €1,690,000 | €5,670 | 16.3% | 81 | 71 |
Short-term vacation rental The 5-bed villa in Estômbar e Parchal offers a strong gross yield of 5.6%, making it an attractive option for short-term vacation rentals in the tourist-heavy Algarve region. With a fair value exceeding the listing price by 12.1%, investors can capitalize on the area's market strength and demand for holiday accommodations. Buy-and-hold With a fair value of €1,331,298 compared to the listing price of €1,170,000, this villa represents a strategic buy-and-hold opportunity, allowing for appreciation potential in one of the Algarve's thriving neighborhoods. The property’s solid condition rating of 85/100 enhances its attractiveness for long-term value appreciation in a stable economic environment. Long-term rental This property, given its 5-bed configuration and favorable yield of 5.6%, is well-suited for long-term rental in a region known for its strong rental demand. The gap to fair value indicates potential for equity growth while providing a solid return on investment in the growing Algarve housing market.
Tenant turnover risk With a tenant stability score of 65/100, there is potential for higher turnover, which may lead to increased vacancy periods and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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