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.
5-bedroom, 6-bathroom villa of 393 m², built in 2017, energy rating A. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa includes a state-of-the-art wine cellar and a versatile outdoor area with folding glass doors, enabling seamless indoor-outdoor living throughout the year.
The valuation. The asking price of €2,180,000 is significantly above the fair value of €484,289, creating a discrepancy of €1,695,711 (77.8%). Consequently, the property is considered overpriced.
Fair value modelled at €1,963,664 from 6 comparable sales in the area. Asking €2,180,000 sits €216,336 (11.0%) above — overpriced versus fair value.
Asking €2,180,000 versus the rua do Pestana Golf Resort area baseline of €1,707,424 (€4,823/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €1,707,424, adjusted for condition and micro-location, gives a modelled fair value of €1,963,664 (€5,547/m²), a €216,336 (11.0%) gap versus the €2,180,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Pestana Golf Resort | Subject | €2,180,000 | €6,158 | — | 84 | 73 |
| Estômbar e Parchal · 19085a | Active | €2,180,000 | €5,547 | 9.9% | 81 | 73 |
| rua do Pestana Golf Resort | Active | €2,180,000 | €5,547 | 9.9% | 85 | 74 |
| rua da Boa Nova Village, 13 | Active | €3,267,000 | €8,377 | 36.0% | 93 | 74 |
| Lagoa e Carvoeiro · 51c997 | Active | €1,790,000 | €5,457 | 11.4% | 85 | 77 |
| Median comp | €2,180,000 | €5,547 | 9.9% | 85 | 74 |
Short-term vacation rental The property, with a gross yield of only 2.1%, is not an ideal candidate for short-term vacation rentals given its significant gap of 77.8% from fair value. This oversaturation of property pricing indicates potential difficulties in maintaining competitive rental rates in a price-sensitive market. Buy-and-hold Although the property is located in a popular tourist destination, the substantial overpricing suggests limited upside potential for long-term capital appreciation when compared to its fair value of €484,289. Investors should be cautious as the existing condition and neighborhood scores do not align favorably with the high asking price. Value-add renovation Given the current valuation of €2,180,000, the property does not present an attractive opportunity for value-add renovations, as the 77.8% discrepancy from fair value indicates an overestimation of its worth. Investing more into renovations may not yield returns that justify the initial investment in an overpriced asset. Not ideal for Student housing, Luxury market, Long-term rental. The property fails to align with the needs of student housing and long-term rentals due to its high price point, indicating it is overpriced in a market that may be better served by more affordably priced options. The luxury market is further stifled by the valuation, which does not correspond with the expected quality of amenities aligned with high-end investments.
Economic Sensitivity With an economic stability score of 70, the property may be vulnerable to market fluctuations that could impact rental income or property value, particularly in times of economic downturns. Tenant Turnover Risk Given a tenant stability score of 70, there's a moderate likelihood of tenant turnover, which could lead to higher vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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