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.
4-bedroom, 5-bathroom villa of 380 m², built in 2004, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a landscaped garden with a sauna and potential for various leisure additions, such as a tennis court or mini-golf on its expansive plot.
The valuation. The asking price of €1,636,000 significantly exceeds the fair value of €459,717, resulting in an overpriced situation of €1,176,283 (71.9%). This discrepancy raises serious concerns about the property’s long-term investment viability.
Fair value modelled at €459,717 from the area baseline, adjusted for condition and location. Asking €1,636,000 sits €1,176,283 (71.9%) above — overpriced versus fair value.
Asking €1,636,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,309,860 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,309,860 + condition +€37,406 + location +€36,991 = modelled fair value of €459,717 (€1,210/m²), a €1,176,283 (71.9%) gap versus the €1,636,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · d7a496 | Subject | €1,636,000 | €4,305 | — | 75 | 74 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 37.1% | 82 | 73 |
| Lagoa e Carvoeiro · 65a5ae | Active | €1,100,000 | €4,000 | 7.1% | 80 | 73 |
| urbanização Presa da Moura | Active | €1,749,000 | €7,257 | 68.6% | 82 | 70 |
| rua do Pestana Golf Resort | Active | €2,180,000 | €6,158 | 43.0% | 84 | 73 |
| Median comp | €1,424,500 | €5,079 | 18.0% | 82 | 73 |
Short-term vacation rental The property is overpriced at €1,636,000 compared to a fair value of €459,717, indicating a significant gap that impacts its potential as a short-term rental. While the neighborhood is popular with tourists, the low yield of 2.7% suggests that the investment may not generate sufficient returns to justify the high purchase price. Long-term rental Investing in this villa as a long-term rental seems unwise given its overpriced status, with a fair value of only €459,717 against a listing of €1,636,000. Even with decent condition and neighborhood ratings, the staggering price diminishes the attractiveness of potential long-term tenants. Buy-and-hold The buy-and-hold strategy is compromised by the property being overpriced, with a valuation gap of 71.9%, making it difficult to achieve meaningful appreciation over time. Although the area has strong tourist-driven demand, the high initial investment hampers the viability of long-term capital growth in this context.
Economic Dependency Risk The property's moderate economic stability score of 65/100 indicates potential vulnerability to economic downturns, which could affect tenant retention and overall revenue.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
