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 €1,087,560 (€2,862/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 €1,087,560 + 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 |
| Lagoa e Carvoeiro · 25f5d9 | Active | €2,180,000 | €5,547 | 28.8% | 80 | 73 |
| Median comp | €1,424,500 | €4,774 | 10.9% | 81 | 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.
