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.
1-bedroom, 1-bathroom house of 60 m², energy rating E. Located on largo António Joaquim Júdice, 19, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The house includes a rooftop terrace with panoramic views of the Arade River, enhancing its appeal as a holiday retreat in a tranquil setting.**
The valuation. The asking price of €225,000 is €28,985 (14.8%) above the fair value of €196,015, indicating that this property is overpriced. Buyers should be cautious about the potential for a return on investment given the current valuation.
Fair value modelled at €196,015 from 6 comparable sales in the area. Asking €225,000 sits €28,985 (14.8%) above — overpriced versus fair value.
Asking €225,000 versus the largo António Joaquim Júdice, 19 area baseline of €248,383 (€4,140/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 is below the parish average, reducing 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 €248,383, adjusted for condition and micro-location, gives a modelled fair value of €196,015 (€3,267/m²), a €28,985 (14.8%) gap versus the €225,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| largo António Joaquim Júdice, 19 | Subject | €225,000 | €3,750 | — | 50 | 70 |
| rua Engenheiro Duarte Pacheco | Active | €320,000 | €3,299 | 12.0% | 58 | 74 |
| rua Engenheiro Duarte Pacheco | Active | €320,000 | €3,299 | 12.0% | 70 | 72 |
| Ferragudo · 4a44c4 | Active | €535,000 | €4,496 | 19.9% | — | 75 |
| Estômbar e Parchal · 1624b2 | Active | €427,000 | €3,235 | 13.7% | 60 | 76 |
| Median comp | €373,500 | €3,299 | 12.0% | 60 | 75 |
Short-term vacation rental Given the property's listing price of €225,000, which is 14.8% above its fair value of €196,015, it may not deliver the necessary cash flow to justify the investment for short-term rentals in a competitive tourist market. Additionally, with a gross yield of only 4.5% and a condition rating of 55/100, profitability could be adversely affected by high operational costs. Buy-and-hold Investing in this property as a buy-and-hold strategy seems imprudent as its overpricing at €225,000 compared to a fair value of €196,015 offers limited appreciation potential in the long term. The underlying risks, exacerbated by a modest yield of 4.5% and the property's average condition, could hinder effective wealth accumulation. Long-term rental The property’s high asking price of €225,000 presents a challenge for long-term rental investors, especially given its fair value of €196,015 and a gross yield of just 4.5%. This insufficient yield, coupled with a condition rating of only 55/100, makes it difficult to sustain a profitable rental income in a market driven by tourism demands.
Economic Vulnerability The economic stability score of 60/100 indicates potential risks related to market fluctuations that could impact rental income or 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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