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.
3-bedroom, 3-bathroom house of 450 m², built in 2003, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a seamless open-plan living area that enhances natural light and a private terrace overlooking lush greenery, perfect for outdoor entertaining.
The valuation. The asking price of €890,000 significantly exceeds the fair value of €494,913 by €395,087 (44.4%), indicating that this property is overpriced. This discrepancy suggests limited immediate potential for capital appreciation.
Fair value modelled at €494,913 from the area baseline, adjusted for condition and location. Asking €890,000 sits €395,087 (44.4%) above — overpriced versus fair value.
Asking €890,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,287,900 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 80 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,287,900 + condition +€2,109 + location +€36,504 = modelled fair value of €494,913 (€1,100/m²), a €395,087 (44.4%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 25f63b | Subject | €890,000 | €1,978 | — | 72 | 70 |
| Lagoa e Carvoeiro · 96c54c | Active | €740,000 | €4,774 | 141.4% | 85 | 73 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 165.6% | 78 | 71 |
| Lagoa e Carvoeiro · 95705d | Active | €1,895,000 | €6,035 | 205.1% | 75 | 74 |
| rua da Igreja, 6 | Active | €425,000 | €5,743 | 190.4% | 84 | 72 |
| Median comp | €995,000 | €5,498 | 178.0% | 81 | 73 |
Short-term vacation rental The property is overpriced at €890,000, significantly surpassing the fair value of €494,913, leading to a concerning 44.4% gap. Given that the yield is 0%, it may not attract short-term vacation renters effectively in the competitive Algarve market. Long-term rental At a listing price of €890,000, the property does not present a justified investment for long-term rental, especially considering the fair value of €494,913 and a yield of 0%. The high purchase price in relation to rental income potential makes it a less appealing option for long-term tenants in the area. Family rental This property is not a viable family rental investment due to its overpriced status at €890,000 compared to a fair value of €494,913, creating a 44.4% discrepancy. Families may seek better value for money in the neighbourhood rather than invest in a property with a lack of rental yield and relatively high price point.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of fluctuations that could affect rental income and property value negatively.
