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, 2-bathroom house of 190 m², built in 1980, energy rating E. Located on rua Aldeia das Chaminés, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts extensive gardens and a spacious terrace that captures panoramic sea views, enhancing the outdoor living spaces unique to the area.
The valuation. The asking price of €795,000 is significantly above the fair value of €184,329, reflecting a discrepancy of €610,671 (76.8%). This property is clearly overpriced based on current market assessments.
Fair value modelled at €556,516 from the area baseline, adjusted for condition and location. Asking €795,000 sits €238,484 (30.0%) above — overpriced versus fair value.
Asking €795,000 versus the rua Aldeia das Chaminés area baseline of €543,780 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 65 · Materials 70 · Room dimensions 76). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 65/100 (Housing Market 80 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
rua Aldeia das Chaminés
Area baseline €543,780 + condition -€19,891 + location +€32,627 = modelled fair value of €556,516 (€2,929/m²), a €238,484 (30.0%) gap versus the €795,000 asking price.
Short-term vacation rental The property, with a fair value significantly lower than its listing price, presents a troubling investment for short-term vacation rental due to its 76.8% pricing gap. Given the area's reliance on tourism, potential occupancy rates may not justify the current asking price, leading to low yield prospects. Value-add renovation Investing in value-add renovations is not advisable as the current listing price far exceeds fair market value, suggesting the property is overpriced. Renovation costs may not lead to an increase in overall asset value that can justify the financial outlay and risk involved. Long-term rental The property is overpriced, resulting in a gross yield of only 4.6%, which is below attractive long-term rental benchmarks. Given the economic variability tied to the local tourism industry, the rental income may become insufficient to cover holding costs and provide a compelling return. Not ideal for student housing The property location and pricing position it unfavorably for student housing investment due to the gap between current listing and fair value. Additionally, the amenities do not cater well to this demographic, reducing tenant appeal. Not ideal for luxury market With a fair value substantially lower than the list price, the luxury market positioning becomes questionable for this property. The subpar condition and neighborhood ratings further detract from its appeal in this competitive segment.
Economic Vulnerability The combined economic and tenant stability scores of 60/100 indicate a potential vulnerability to market fluctuations, which could affect occupancy rates and rental income.
