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.
4-bedroom, 3-bathroom house of 235 m², built in 2021, energy rating B. Located on praceta da Ermida, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: This townhouse includes a stunning panoramic terrace with a private jacuzzi, providing breathtaking views and an exclusive space for outdoor entertaining.
The valuation. The asking price of €849,000 is significantly below the fair value of €1,037,986, presenting an undervalued opportunity with a difference of €188,986 (18.2%). This discrepancy highlights the potential for immediate equity gain.
Fair value modelled at €1,037,986 from 6 comparable sales in the area. Asking €849,000 sits €188,986 (18.2%) below — the upside to fair value.
Asking €849,000 versus the praceta da Ermida area baseline of €948,526 (€4,036/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 above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €948,526, adjusted for condition and micro-location, gives a modelled fair value of €1,037,986 (€4,417/m²), a €188,986 (18.2%) gap versus the €849,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praceta da Ermida | Subject | €849,000 | €3,613 | — | 88 | 74 |
| Estômbar e Parchal · f5ec8d | Active | €740,000 | €4,253 | 17.7% | 78 | 63 |
| Lagoa e Carvoeiro · a46772 | Active | €1,990,000 | €9,171 | 153.8% | 85 | 73 |
| urbanização Boca do Rio, 7 | Active | €569,000 | €1,550 | 57.1% | 80 | 66 |
| Lagoa e Carvoeiro · f5eb90 | Active | €1,250,000 | €4,417 | 22.3% | 75 | 73 |
| Median comp | €995,000 | €4,335 | 20.0% | 79 | 70 |
Short-term vacation rental The property in Estômbar e Parchal presents a compelling opportunity for short-term vacation rentals, with a yield of 10.2% gross in a primarily tourist-driven economy. Given the fair value assessment at €1,037,986, this property is currently subvalued, indicating strong potential for profitable returns in vacation accommodation. Buy-and-hold Investing in this property as a buy-and-hold strategy is strategically advantageous due to its fair value of €1,037,986 and the current listing price of €849,000, resulting in an 18.2% gap. With a solid condition rating of 84/100, the property presents a stable investment that could appreciate significantly over time. Family rental The 4-bedroom house is well-positioned for family rental opportunities, benefitting from a strong local tenant market, supported by the region's low crime rates and expatriate communities. With a respectable neighbourhood rating of 74/100, this property is ideal for families seeking quality housing in a safe area while reflecting an 18.2% valuation gap. Not ideal for student housing Despite the favourable metrics, this property is not suited for student housing due to its family-oriented layout and target market. The neighbourhood dynamics are better aligned with long-term families and vacationers than the transient nature of student rentals. Not ideal for luxury market Targeting the luxury market is not appropriate for this property, as its current valuation and condition do not align with high-end expectations. The focus on affordability and practicality resonates more with middle-income families and vacationers than with luxury-seeking clients.
Moderate Economic Risk The economic stability score of 65/100 indicates potential vulnerabilities in local market conditions that may affect rental income and property value over time.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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