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 villa of 122 m², built in 2012, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This villa features a rooftop terrace with breathtaking views of the Atlantic Ocean, perfect for sunset gatherings and relaxation, enhancing both lifestyle and property value.
The valuation. The property is listed at €695,000, significantly above the fair value of €141,684, resulting in an overpriced assessment of €553,316 (79.6% premium). This discrepancy indicates a poor investment for potential buyers.
Fair value modelled at €141,684 from the area baseline, adjusted for condition and location. Asking €695,000 sits €553,316 (79.6%) above — overpriced versus fair value.
Asking €695,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €398,086 (€3,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · 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 €398,086 + condition +€6,100 + location +€11,876 = modelled fair value of €141,684 (€1,161/m²), a €553,316 (79.6%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 6d5540 | Subject | €695,000 | €5,697 | — | 75 | 74 |
| Lagoa e Carvoeiro · 99f399 | Active | €430,000 | €2,756 | 51.6% | 72 | 74 |
| Lagoa e Carvoeiro · b4540b | Active | €1,075,000 | €6,073 | 6.6% | 75 | 71 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 4.4% | 75 | 70 |
| Lagoa e Carvoeiro · f35f4c | Active | €615,000 | €3,968 | 30.4% | 60 | 71 |
| Median comp | €845,000 | €4,958 | 13.0% | 74 | 71 |
Short-term vacation rental The property, priced at €695,000, is overly inflated compared to its fair value of €141,684, representing a significant gap of 79.6%. With a gross yield of just 2.8% and a condition rating of 78/100, this villa is not an ideal candidate for a vacation rental strategy, especially in a competitive seasonal market. Buy-and-hold Investing in this villa at its current listing price would lead to substantial capital loss, as the fair value is only €141,684, indicating the property is overpriced by 79.6%. Even with a decent neighbourhood rating of 74/100, the low yield of 2.8% suggests that holding this asset might not generate sufficient returns over time. Family rental The villa is priced at €695,000, which is considerably above its fair value of €141,684, with a gap of 79.6% marking it as overpriced. While the property is in a well-rated neighbourhood with amenities suitable for families, the low yield of 2.8% makes it an unattractive option for a long-term family rental investment.
Economic Vulnerability With an economic stability score of 65/100, there is potential risk of economic downturns affecting rental income due to fluctuating market conditions.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
