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.
1-bedroom, 1-bathroom apartment of 56 m², built in 1983, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment enjoys access to resort amenities including a swimming pool and landscaped gardens, enhancing its appeal for both vacation rentals and permanent living. Location Highlights: Situated just minutes from the pristine beaches of Nossa Senhora da Rocha and Armação de Pêra, it benefits from proximity to local shopping and dining options.
The valuation. The asking price of €240,000 sits significantly above the fair value estimate of €50,790, indicating it is overpriced by €189,210 (78.8%). This suggests a misalignment in expectations between buyers and market realities.
Fair value modelled at €50,790 from the area baseline, adjusted for condition and location. Asking €240,000 sits €189,210 (78.8%) above — overpriced versus fair value.
Asking €240,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €160,272 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 (Condition 60 · Materials 62 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 76/100 (Housing Market 83 · Amenities 75 · Economic 71 · Tenant Quality 74). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €160,272 + condition -€11,900 + location +€5,906 = modelled fair value of €50,790 (€907/m²), a €189,210 (78.8%) gap versus the €240,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 90d718 | Subject | €240,000 | €4,286 | — | 60 | 76 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 44.7% | 74 | 70 |
| rua das Olarias | Active | €255,000 | €3,000 | 30.0% | 63 | 79 |
| Lagoa e Carvoeiro · 65a863 | Active | €350,000 | €3,608 | 15.8% | 70 | 70 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 72.0% | 75 | 63 |
| Median comp | €312,500 | €3,304 | 22.9% | 72 | 70 |
Short-term vacation rental The 1-bed apartment in Lagoa, with a high valuation gap of 78.8%, presents significant risks for short-term vacation rentals, given its overpriced nature at €240,000. While the location near Algarve's tourist hotspots could attract guests, the gross yield of 4% suggests that the investment may not yield sufficient returns relative to the high purchase price. Buy-and-hold Investing in this 1-bed apartment as a buy-and-hold asset appears problematic due to its inflated price of €240,000 against a fair value of just €50,790, translating to a concerning gap of 78.8%. This premium, combined with a mediocre property condition rating of 61/100, makes it challenging to see substantial long-term appreciation. Family rental The potential for this 1-bed apartment to serve as a family rental is diminished by its overvaluation, listed at €240,000, which is significantly above the fair value of €50,790. Although the neighborhood maintains a decent score of 76/100, the high price creates hurdles for sustainable rental demand among families seeking affordable housing options.
Economic dependency risk: With an economic stability score of 71/100, there is potential vulnerability to economic fluctuations that could impact tenant retention and rental income.
