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 apartment of 142 m², built in 2006, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment includes a dedicated barbecue area on the terrace, perfect for entertaining, and is sold fully furnished for immediate occupancy.
The valuation. The asking price of €435,000 is significantly above the fair value of €165,576, indicating an overvaluation of €269,424 (61.9%). This price does not reflect attractive investment potential. Buy-to-flip angle. This property, offered at an inflated price, lacks the appeal for a profitable flip, as anticipated renovation costs would not justify the return. Quick resale likely isn’t feasible given market conditions. Buy-to-let angle. With a gross yield of 0%, the rental income strategy appears unviable, particularly in a tourist-focused area like Lagoa, where seasonal demand may not cover the costs of ownership.
Fair value modelled at €165,576 from the area baseline, adjusted for condition and location. Asking €435,000 sits €269,424 (61.9%) above — overpriced versus fair value.
Asking €435,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €406,404 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 80). 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 €406,404 + condition +€7,766 + location +€13,823 = modelled fair value of €165,576 (€1,166/m²), a €269,424 (61.9%) gap versus the €435,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 90d7a1 | Subject | €435,000 | €3,063 | — | 75 | 74 |
| Lagoa e Carvoeiro · 65a863 | Active | €350,000 | €3,608 | 17.8% | 70 | 70 |
| rua de Vale do Milho S / N | Active | €430,000 | €3,805 | 24.2% | 76 | 70 |
| urbanização Clube Golfmar | Active | €430,000 | €2,756 | 10.0% | 74 | 71 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 22.6% | 74 | 70 |
| Median comp | €390,000 | €3,182 | 3.9% | 74 | 70 |
Short-term vacation rental This property is overpriced at €435,000, which is significantly above its fair value of €165,576, resulting in a substantial gap of 61.9%. Given the current yield of 0%, the potential for profitability in the short-term rental market appears limited despite the tourism appeal in Algarve. Buy-and-hold At a listing price of €435,000, this property does not present a suitable buy-and-hold investment as it is overpriced compared to its fair value of €165,576. The lack of a positive yield highlights the inefficiency of this investment for long-term capital appreciation. Value-add renovation Investing in value-add renovations can often enhance property value, but at €435,000, this apartment is overpriced against the fair value of €165,576. The high acquisition cost significantly restricts the potential return on investment from renovation efforts, making it difficult to justify additional spending. Not ideal for: Student housing, Luxury market, Family rental This property is overpriced and therefore not suitable for segments such as student housing, luxury market appeals, or family rentals, which require a competitive pricing strategy to attract tenants. The valuation imbalance suggests that it may not meet the affordability criteria sought by these tenant demographics.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to economic downturns that may affect rental income.
