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 house of 84 m², built in 1973, energy rating E. Located on beco do Telheiro, 5, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes a functional garage and distinct outdoor areas, offering opportunities for personal customization and enhanced privacy in a tranquil residential setting.
The valuation. The asking price of €290,000 is significantly above the fair value of €249,614, representing an overvaluation of €40,386 (16.2%). This suggests the property is overpriced for its current market position.
Fair value modelled at €249,614 from 6 comparable sales in the area. Asking €290,000 sits €40,386 (16.2%) above — overpriced versus fair value.
Asking €290,000 versus the beco do Telheiro, 5 area baseline of €282,116 (€3,359/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €282,116, adjusted for condition and micro-location, gives a modelled fair value of €249,614 (€2,972/m²), a €40,386 (16.2%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco do Telheiro, 5 | Subject | €290,000 | €3,452 | — | 70 | 71 |
| Estômbar e Parchal · 1624b2 | Active | €427,000 | €3,235 | 6.3% | 60 | 76 |
| urbanização António Joaquim Duarte, 23 | Active | €390,000 | €2,708 | 21.6% | 68 | 74 |
| largo António Joaquim Júdice, 19 | Active | €225,000 | €3,750 | 8.6% | 50 | 70 |
| Ferragudo · 4d40d7 | Active | €395,000 | €1,317 | 61.9% | 65 | 73 |
| Median comp | €392,500 | €2,972 | 13.9% | 63 | 74 |
Short-term vacation rental Given the property’s location in the Coastal Algarve area with strong tourism influence, it may attract vacationers; however, with a fair value of €249,614 and a listing price of €290,000, it is overpriced by 16.2%. This could significantly limit its profitability during peak seasons as operational costs outweigh potential yield, currently at 4.4% gross. Long-term rental While the neighbourhood offers decent amenities and tenant quality, the property’s overpriced status at €290,000 presents a challenge for long-term renting viability, especially with a fair value of €249,614. Potential investors might find the anticipated return insufficient to justify the inflated price compared to comparable market rates. Buy-and-hold Investing in this property as a buy-and-hold strategy appears less advantageous, given its listing price of €290,000 exceeds the fair market value of €249,614 by 16.2%. The overall condition score of 67/100 also suggests that further investments may be required to maintain the property, further diluting returns in an already overpriced scenario.
Moderate Economic Risk The economic stability score of 65/100 indicates a moderate risk of economic fluctuations that could impact tenant retention 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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