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.
3-bedroom, 3-bathroom villa of 177 m², built in 1984, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This villa features a rooftop terrace with panoramic sea views, offering a serene space that enhances the outdoor living experience.
The valuation. The asking price of €1,075,000 significantly exceeds fair value by €871,319, reflecting an overpriced assessment at 81.1% above what can be justified. This property does not represent a financial deal based on its current listed price.
Fair value modelled at €203,681 from the area baseline, adjusted for condition and location. Asking €1,075,000 sits €871,319 (81.1%) above — overpriced versus fair value.
Asking €1,075,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €506,574 (€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 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (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 €506,574 + condition +€9,127 + location +€15,076 = modelled fair value of €203,681 (€1,151/m²), a €871,319 (81.1%) gap versus the €1,075,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · b4540b | Subject | €1,075,000 | €6,073 | — | 75 | 71 |
| Estômbar e Parchal · 735450 | Active | €1,350,000 | €5,947 | 2.1% | 78 | 72 |
| Estômbar e Parchal · 956c70 | Active | €1,350,000 | €5,947 | 2.1% | 78 | 67 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 2.1% | 75 | 70 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 2.1% | 80 | 63 |
| Median comp | €1,350,000 | €5,947 | 2.1% | 78 | 69 |
Short-term vacation rental The property’s listing price of €1,075,000 reflects an 81.1% gap from its fair value of €203,681, indicating it is overpriced for the short-term vacation rental market. Given the region's tourism-driven economy, the low yield of 2.5% further supports the argument against this strategy. Long-term rental At a listing price significantly above fair value, this villa is not positioned well for the long-term rental segment, where return expectations are critical. The quality of the neighborhood, rated 71/100, does not compensate for the high acquisition cost, leaving potential investors with limited upside. Buy-and-hold With an overpriced evaluation, this property does not present a compelling buy-and-hold opportunity in the current market. The relatively low condition score of 78/100 and the associated yield of 2.5% weaken its attractiveness for long-term value appreciation. Not ideal for student housing The property is not suited for student housing due to the availability of better educational options inland. Additionally, the high price restricts the potential for profitability in this market segment. Not ideal for luxury market Being overpriced at €1,075,000, this property does not align with the luxury market standards that often require significant value. The gap from fair value coupled with local economic indicators makes it an unsuitable option for luxury investment.
Economic Sensitivity Risk The economic stability score of 65/100 indicates a moderate risk of economic downturns that may affect rental income and property value.
