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, 5-bathroom house of 238 m², built in 2017, energy rating B. Located on rua de Vale do Milho, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa boasts solar panels for efficient water heating and a versatile basement space that can accommodate a gym, office, or cinema room, enhancing its functionality.
The valuation. The asking price of €645,000 sits significantly above the fair value of €293,285, reflecting an overpricing of €351,715 (54.5%). This valuation indicates that the property does not represent a sound investment opportunity at its current asking price.
Fair value modelled at €293,285 from the area baseline, adjusted for condition and location. Asking €645,000 sits €351,715 (54.5%) above — overpriced versus fair value.
Asking €645,000 versus the rua de Vale do Milho area baseline of €681,156 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 88 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 80 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua de Vale do Milho
Area baseline €681,156 + condition +€29,750 + location +€22,203 = modelled fair value of €293,285 (€1,232/m²), a €351,715 (54.5%) gap versus the €645,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Vale do Milho | Subject | €645,000 | €2,710 | — | 82 | 73 |
| Lagoa e Carvoeiro · d7a496 | Active | €1,636,000 | €4,305 | 58.9% | 75 | 74 |
| Lagoa e Carvoeiro · 65a5ae | Active | €1,100,000 | €4,000 | 47.6% | 80 | 73 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 93.8% | 78 | 71 |
| Lagoa e Carvoeiro · 25f5d9 | Active | €2,180,000 | €5,547 | 104.7% | 80 | 73 |
| Median comp | €1,443,000 | €4,779 | 76.3% | 79 | 73 |
Short-term vacation rental While the property's gross yield of 7.5% may appear attractive, the significant gap of 54.5% between the listing price of €645,000 and the fair value of €293,285 indicates it is overpriced. Given the area's popularity with tourists, it may attract short-term rental interest, but the overvaluation diminishes potential profitability. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its steep pricing, which exceeds the fair value by 54.5%. The existing condition rating of 85/100 and moderate neighborhood score of 73/100 further suggest that holding this property at the listed price may not yield favorable long-term returns. Family rental Although the property could cater to families considering its size and decent condition, the hefty listing price relative to the fair value renders it overpriced at €645,000. Potential rental income may not sufficiently cover the costs and expectations associated with such an inflated price, creating doubts about meaningful cash flow for family tenants.
Economic Downturn Risk The economic stability score of 55/100 suggests a potential for economic downturns, which could negatively impact rental income and property value.
