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, 4-bathroom house of 368 m², built in 2003. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Well-equipped outdoor barbecue area with a wood-fired oven and integrated kennel for pets, enhancing both leisure and comfort for gatherings.
The valuation. The asking price of €5,000,000 is significantly above the fair value of €444,857, representing an overpricing of €4,555,143 (91.1%). This disparity indicates that the property does not present a sound financial investment opportunity.
Fair value modelled at €444,857 from the area baseline, adjusted for condition and location. Asking €5,000,000 sits €4,555,143 (91.1%) above — overpriced versus fair value.
Asking €5,000,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,053,216 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,053,216 + condition +€37,375 + location +€34,330 = modelled fair value of €444,857 (€1,209/m²), a €4,555,143 (91.1%) gap versus the €5,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 49b8f5 | Subject | €5,000,000 | €13,587 | — | 75 | 73 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 50.8% | 80 | 75 |
| Lagoa e Carvoeiro · 956caf | Active | €1,495,000 | €2,142 | 84.2% | 85 | 73 |
| urbanização Bemparece, 28 | Active | €900,000 | €1,895 | 86.1% | 72 | 72 |
| Lagoa e Carvoeiro · cfe058 | Active | €1,350,000 | €5,947 | 56.2% | 77 | 72 |
| Median comp | €1,400,000 | €4,045 | 70.2% | 79 | 73 |
Long-term rental Given the existing high price of €5,000,000 and a significant gap from its fair value of €444,857, this property presents no potential for positive cash flow and thus is not suitable for long-term rental investment. The yield of 0% gross underscores the lack of economic viability in the long-term rental strategy. Short-term vacation rental While the Algarve is known for its tourism, the property's pricing at €5,000,000 greatly exceeds its fair value of €444,857, making it an overpriced choice for short-term vacation rentals. The lack of return potential, combined with high upfront costs, diminishes its attractiveness in the vacation rental market. Buy-and-hold Investing in a buy-and-hold strategy is ill-advised for this property given its significant price tag of €5,000,000 relative to a fair value of €444,857, which signals it is overpriced. The property fails to provide adequate returns or appreciation potential, making it an unwise long-term investment choice.
Economic Vulnerability With an economic stability score of 65/100, there is a heightened risk of market fluctuations that could adversely affect property values and rental demand.
