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 villa of 52 m², built in 2019, energy rating A. Located Estômbar e Parchal parish, Lagoa municipality, Faro district. The villa features a private garden with a pergola, ideal for outdoor relaxation and entertaining, and offers a lucrative rental scheme providing potential returns up to 4% per year.
The valuation. The asking price of €315,000 exceeds the fair value of €233,161 by €81,839, or 35.1%. This property is overpriced in the current market.
Fair value modelled at €233,161 from 5 comparable sales in the area. Asking €315,000 sits €81,839 (35.1%) above — overpriced versus fair value.
Asking €315,000 versus the Estômbar e Parchal, Lagoa, Faro area baseline of €222,530 (€4,279/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €222,530, adjusted for condition and micro-location, gives a modelled fair value of €233,161 (€4,484/m²), a €81,839 (35.1%) gap versus the €315,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Estômbar e Parchal · 51ca78 | Subject | €315,000 | €6,058 | — | 89 | 74 |
| Estômbar e Parchal · 956e5b | Active | €695,000 | €4,484 | 26.0% | 80 | 72 |
| Estômbar e Parchal · 6ebb1c | Active | €735,000 | €4,742 | 21.7% | 80 | 74 |
| Lagoa e Carvoeiro · f5eb90 | Active | €1,250,000 | €4,417 | 27.1% | 75 | 73 |
| Ferragudo · 19084b | Active | €625,000 | €4,167 | 31.2% | 76 | 61 |
| Median comp | €715,000 | €4,451 | 26.5% | 78 | 73 |
Short-term vacation rental The property’s listing price of €315,000 is significantly above its fair value of €233,161, which indicates it is overpriced and may not generate adequate return on investment given its gross yield of only 3.2%. With a neighborhood score of 74 out of 100, the demand for vacation rentals may not be sufficient to justify such a high entry cost. Buy-and-hold Investing in this villa is not advisable as it is overpriced at €315,000 compared to the fair value of €233,161, leading to a substantial gap of 35.1%. This price point diminishes the long-term appreciation potential, even with a decent condition rating of 84/100. Long-term rental The property's asking price of €315,000 significantly overshoots its fair value, suggesting that it is overpriced relative to the sustainable rental yields it can provide at only 3.2%. As such, long-term rental returns may not adequately offset the initial capital outlay, posing a risk to effective cash flow management. Not ideal for: Student housing, Luxury market, Industrial investment.
Economic volatility risk The economic stability score of 65 indicates a moderate risk of downturns that may affect cash flows, while a tenant stability score of 70 suggests potential challenges in maintaining occupancy rates during economic fluctuations.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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