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 apartment of 85 m², energy rating D. Located on rua das Olarias, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Property Features: This apartment includes a 37m² rooftop terrace that offers ample space for outdoor entertaining and provides scenic views of the surrounding Lagoa e Carvoeiro area.
The valuation. The asking price of €255,000 significantly exceeds the fair value of €79,586 by €175,414 (68.8%). This property is clearly overpriced, presenting a challenge for potential investors seeking value-driven opportunities.
Fair value modelled at €79,586 from the area baseline, adjusted for condition and location. Asking €255,000 sits €175,414 (68.8%) above — overpriced versus fair value.
Asking €255,000 versus the rua das Olarias area baseline of €292,995 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 (Condition 63 · Materials 60 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 79/100 (Housing Market 80 · Amenities 85 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua das Olarias
Area baseline €292,995 + condition -€16,602 + location +€9,998 = modelled fair value of €79,586 (€936/m²), a €175,414 (68.8%) gap versus the €255,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Olarias | Subject | €255,000 | €3,000 | — | 63 | 79 |
| Lagoa e Carvoeiro · 65a863 | Active | €350,000 | €3,608 | 20.3% | 70 | 70 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 21.0% | 74 | 70 |
| Lagoa e Carvoeiro · 90d718 | Active | €240,000 | €4,286 | 42.9% | 60 | 76 |
| Lagoa e Carvoeiro · 90d7a1 | Active | €435,000 | €3,063 | 2.1% | 75 | 74 |
| Median comp | €312,500 | €3,336 | 11.2% | 72 | 72 |
Short-term vacation rental The 2-bed apartment in Lagoa e Carvoeiro appears overpriced at €255,000, with a fair value assessed at only €79,586, indicating a significant gap of 68.8%. Given the modest gross yield of 4.4% and the growing number of tourism-focused properties in the Algarve, this investment may not provide the expected return. Buy-and-hold Investing in this Lagoa e Carvoeiro apartment for a buy-and-hold strategy is questionable, as it's priced well above its fair value of €79,586. The current condition rating of 63/100 further suggests that the property will not appreciate significantly over time, making it a less attractive long-term investment. Family rental As a family rental, the apartment's high asking price of €255,000 compared to its fair value of €79,586 raises concerns about affordability for potential tenants. Additionally, the neighbourhood's solid rating of 79/100 may not justify this premium despite the property’s appeal within a tourist-driven region. Not ideal for This property is clearly unsuitable as student housing, given the elevated price tag and the competitive rental market for students. Furthermore, there is no evidence to support its viability in the luxury market or industrial use, given the current valuation gap and property characteristics.
Economic Vulnerability The economic stability score of 65/100 indicates potential fluctuations in market conditions that could affect property values 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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