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, 2-bathroom duplex of 123 m², built in 2003, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This duplex boasts a spacious south-facing balcony on the first floor, ideal for enjoying breathtaking sea views and the beautiful Algarve climate year-round.
The valuation. The asking price of €475,000 is significantly above its fair value of €139,267, representing an overpricing of €335,733 or 70.7%. This discrepancy raises concerns about potential returns on investment given current market conditions.
Fair value modelled at €139,267 from the area baseline, adjusted for condition and location. Asking €475,000 sits €335,733 (70.7%) above — overpriced versus fair value.
Asking €475,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €423,981 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 78/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €423,981 + condition +€577 + location +€13,969 = modelled fair value of €139,267 (€1,132/m²), a €335,733 (70.7%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 38c66b | Subject | €475,000 | €3,862 | — | 72 | 78 |
| Lagoa e Carvoeiro · 3893e8 | Active | €430,000 | €4,725 | 22.4% | 74 | 71 |
| Lagoa e Carvoeiro · 1e6002 | Active | €395,000 | €4,877 | 26.3% | 76 | 70 |
| urbanização Clube Golfmar | Active | €430,000 | €2,756 | 28.6% | 74 | 71 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 38.6% | 74 | 70 |
| Median comp | €412,500 | €3,741 | 3.1% | 74 | 71 |
Short-term vacation rental Given the property's location in Algarve, a prime tourist destination, the potential demand for short-term vacation rentals is high. However, with the property being overpriced by 70.7% compared to its fair value, it may not yield the expected return on investment. Long-term rental While long-term rentals in the area can benefit from a generally stable rental market, the current listing price significantly exceeds the fair market value, indicating that the investment may not be financially viable. The gross yield of 2.8% suggests weak rental return prospects relative to the lofty purchase price. Buy-and-hold The buy-and-hold strategy may appear attractive due to the neighborhood’s overall appeal, but purchasing at 70.7% above fair value presents substantial long-term risk in terms of appreciation potential. With inflated costs, the likelihood of securing a satisfactory return diminishes considerably over time.
Economic Downturn Risk: A score of 75 in economic stability may indicate vulnerability during economic downturns, potentially affecting tenant demand 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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