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.
8-bedroom, 6-bathroom house of 400 m², built in 1986, energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property offers construction capacity for 300m² residential use, or 2000m² for Rural Tourism, alongside stunning sea views and proximity to a National Ecological Reserve.
The valuation. The asking price of €2,000,000 sits at 97.5% of the fair value of €50,668. This indicates the property is overpriced, given its significant markup compared to the market average.
Fair value modelled at €50,668 from the area baseline, adjusted for condition and location. Asking €2,000,000 sits €1,949,332 (97.5%) above — overpriced versus fair value.
Asking €2,000,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,144,800 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 13/100 (Condition 10 · Materials 15 · Room dimensions 15). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,144,800 + condition -€390,625 + location +€35,693 = modelled fair value of €50,668 (€127/m²), a €1,949,332 (97.5%) gap versus the €2,000,000 asking price.
Long-term rental The property presents a significant gap of 97.5% from its fair value of €50,668, indicating that it is overpriced at €2,000,000. Furthermore, with a gross yield of 0%, the financial viability of a long-term rental strategy is severely compromised in this instance. Short-term vacation rental Given the seasonal nature of tourism in the Algarve area, combined with the excessive listing price of €2,000,000, this property does not align well with the financial expectations of a short-term vacation rental investment. The 0% gross yield and poor condition score of 13/100 further undermine any potential cash flow from this strategy. Buy-and-hold Investing in this property under a buy-and-hold strategy is not advisable due to its 97.5% premium over the fair value, suggesting it is inefficient in terms of long-term capital growth potential. The lack of yield and significant condition issues signal that holding this asset is likely to yield disappointing results over time.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of fluctuations in the local economy, which could impact tenant demand and rental income stability.
