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 159 m², energy rating F. Located on rua Dom João II, 68, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This property boasts a spacious upper terrace perfect for entertaining, along with a sheltered second terrace ideal for intimate family meals, enhancing its outdoor living appeal.
The valuation. The asking price of €252,500 is significantly below the fair value of €294,234, indicating that this property is underpriced by €41,734 (14.2%). This presents a unique opportunity for purchasing. Buy-to-flip angle. The strategy focuses on quick resale by enhancing property aesthetics and market appeal to attract buyers willing to pay a premium for modern finishes and quality materials. Buy-to-let angle. With an estimated gross yield of 7.8% (~€1,641/month), the rental income strategy targets short-term vacation rentals, capitalizing on the Algarve’s tourist traffic and yielding solid returns for investors.
Fair value modelled at €294,234 from 6 comparable sales in the area. Asking €252,500 sits €41,734 (14.2%) below — the upside to fair value.
Asking €252,500 versus the rua Dom João II, 68 area baseline of €328,820 (€2,068/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €328,820, adjusted for condition and micro-location, gives a modelled fair value of €294,234 (€1,851/m²), a €41,734 (14.2%) gap versus the €252,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Dom João II, 68 | Subject | €252,500 | €1,588 | — | 74 | 60 |
| Portimão · 4a44c3 | Active | €230,000 | €2,130 | 34.1% | — | 67 |
| jardim Localizada em Portimão | Active | €440,000 | €1,571 | 1.0% | 74 | 75 |
| urbanização António Joaquim Duarte, 23 | Active | €390,000 | €2,708 | 70.5% | 68 | 74 |
| Estômbar e Parchal · 1624b2 | Active | €427,000 | €3,235 | 103.7% | 60 | 76 |
| Median comp | €408,500 | €2,419 | 52.3% | 68 | 75 |
Short-term vacation rental This property’s strategic location in the Algarve, coupled with a strong gross yield of 7.8%, makes it an attractive option for short-term vacation rentals, capitalizing on the area’s tourism focus. With a fair value exceeding the listing price by 14.2%, the potential for income generation and capital appreciation is significant. Buy-and-hold Investing in this property as a buy-and-hold strategy presents a compelling opportunity due to its subvalorizada status and close proximity to tourist hotspots. The robust demand for housing in the region driven by the tourism industry supports potential long-term value increases and steady rental income. Family rental While the property offers advantages for family rental due to its size and functionality, the neighborhood rating of 60/100 suggests that tenant quality may vary. Still, the fair value positioned above the listing price indicates a potential for appreciable returns as family housing market dynamics stabilize in the area.
Tenant turnover risk With a tenant stability score of 60/100, there is a moderate risk of higher tenant turnover, which could lead to increased vacancy rates and associated costs.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
