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.
2-bedroom, 1-bathroom studio of 59 m² on the 1st floor, built in 1991, energy rating C. Located on rua do Pestana Golf Resort, 226, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This studio apartment benefits from a large terrace and private balcony with mountain views, and offers owners discounts on green fees at Pestana golf courses.
The valuation. The asking price of €399,000 is substantially above the fair value of €248,422, representing an overpricing of €150,578 (60.6%). This property is considered overpriced based on market comparables. Buy-to-flip angle. The strategy could involve renovating the studio to enhance its appeal, followed by a resale at a significantly higher price point within a competitive vacation market. Quick improvements could capitalize on seasonal tourism demand. Buy-to-let angle. Given its location in a tourist-heavy area, the property could be utilized for short-term vacation rentals to maximize income. However, the gross yield is currently 0%, indicating it may not be generating rental income as is.
Fair value modelled at €248,422 from 6 comparable sales in the area. Asking €399,000 sits €150,578 (60.6%) above — overpriced versus fair value.
Asking €399,000 versus the rua do Pestana Golf Resort, 226 area baseline of €237,770 (€4,030/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 is above the parish average, lifting 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 €237,770, adjusted for condition and micro-location, gives a modelled fair value of €248,422 (€4,211/m²), a €150,578 (60.6%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Pestana Golf Resort, 226 | Subject | €399,000 | €6,763 | — | 72 | 73 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 9.0% | 75 | 63 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 9.0% | 75 | 65 |
| Estômbar e Parchal · 225adf | Active | €395,000 | €2,782 | 58.9% | 75 | 73 |
| Estômbar e Parchal · f35eef | Active | €420,000 | €3,471 | 48.7% | 75 | 70 |
| Median comp | €427,500 | €5,422 | 19.8% | 75 | 68 |
Short-term vacation rental Given the property's significant gap from fair value at 60.6%, it is not ideal for a short-term vacation rental strategy, as expected yields do not justify the investment. The local reliance on tourism in the Algarve region further exacerbates the risk associated with overpaying for this property. Long-term rental Investing in long-term rental for this property is not advisable, as the gross yield stands at 0%, indicating that the asking price is far too high for sustainable returns. Demand for long-term rentals in this area may be affected by the seasonality of the tourism-driven economy, further complicating rental viability. Family rental Acquiring this property for use as a family rental is impractical, given its fair value of €248,422 compared to the asking price of €399,000, suggesting it is overpriced. Families typically seek properties that offer good value for money, which this property fails to offer based on current market analysis.
Economic Vulnerability The property’s economic stability score of 60/100 indicates potential volatility in market conditions that may affect 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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