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 €349,164 (€2,862/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 €349,164 + 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.
