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 216 m², energy rating D. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts a spacious backyard ideal for leisure activities, complemented by a garage providing convenient parking and additional storage options.
The valuation. The asking price of €450,000 is positioned at a 7.4% discount compared to the fair value of €486,146, which reflects a fair valuation of the property in the current market context. Buy-to-flip angle. The buy-to-flip strategy could leverage the property's condition, targeting minor renovations to enhance resale potential significantly before relisting in the competitive Algarve market. Buy-to-let angle. With an estimated gross yield of 6.2%, converting this house into a rental can generate approximately €2,325 monthly, capitalizing on seasonal demand from tourists and long-term residents alike.
Fair value modelled at €486,146 from 6 comparable sales in the area. Asking €450,000 sits €36,146 (7.4%) below — the upside to fair value.
Asking €450,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €581,733 (€2,693/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 above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €581,733, adjusted for condition and micro-location, gives a modelled fair value of €486,146 (€2,251/m²), a €36,146 (7.4%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 0c05a1 | Subject | €450,000 | €2,083 | — | 58 | 70 |
| urbanização da Hortinha, 5 | Active | €990,000 | €2,215 | 6.3% | 66 | 64 |
| Portimão · 5ecf7a | Active | €375,000 | €2,287 | 9.8% | 62 | 75 |
| Estômbar e Parchal · f5ead8 | Active | €485,000 | €2,401 | 15.2% | 68 | 76 |
| Estômbar e Parchal · 1624b2 | Active | €427,000 | €3,235 | 55.3% | 60 | 76 |
| Median comp | €456,000 | €2,344 | 12.5% | 64 | 76 |
Short-term vacation rental This property offers a gross yield of 6.2%, appealing for short-term vacation rentals due to its location in the Algarve, a tourist hotspot. Given its fair valuation and the local demand for vacation accommodation, the investment aligns well with seasonal trends despite no significant discount. Buy-and-hold Investing in this house for a buy-and-hold strategy is viable, as the property maintains a fair value against current market conditions and benefits from the growing tourist influx in the region. While the condition assessment of 55/100 suggests some need for improvement, its attractiveness in the long term remains supported by neighborhood desirability. Long-term rental With a decent gross yield of 6.2%, this property stands to perform adequately for long-term rental, particularly considering its location in a desirable neighborhood. However, potential investors should note that the property is fairly priced, which indicates limited immediate equity gain potential in a competitive rental market.
Economic Sensitivity The property's average economic stability score of 65/100 indicates a moderate risk to its financial performance in volatile economic conditions, which could impact tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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