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, 4-bathroom villa of 283 m², built in 1995, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Unique Feature: The property includes a raised vegetable garden and private chicken coop, promoting a sustainable farm-to-table lifestyle in an exclusive coastal setting. Additional Note: Nestled along the famous Percurso dos Sete Vales Suspensos hiking trail, enhancing outdoor living opportunities.
The valuation. The asking price of €1,250,000 is significantly above the fair value of €336,093, exceeding it by €913,907 (73.1%). This property is clearly overpriced for the market.
Fair value modelled at €336,093 from the area baseline, adjusted for condition and location. Asking €1,250,000 sits €913,907 (73.1%) above — overpriced versus fair value.
Asking €1,250,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €809,946 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 78 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €809,946 + condition +€23,878 + location +€25,253 = modelled fair value of €336,093 (€1,188/m²), a €913,907 (73.1%) gap versus the €1,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 0dcd9f | Subject | €1,250,000 | €4,417 | — | 78 | 72 |
| Estômbar e Parchal · 93724d | Active | €1,299,000 | €4,811 | 8.9% | 78 | 72 |
| rua do Pestana Golf Resort | Active | €1,300,000 | €5,652 | 28.0% | 70 | 80 |
| Lagoa e Carvoeiro · 956caf | Active | €1,495,000 | €2,142 | 51.5% | 85 | 73 |
| Lagoa e Carvoeiro · cfe058 | Active | €1,350,000 | €5,947 | 34.6% | 77 | 72 |
| Median comp | €1,325,000 | €5,232 | 18.4% | 78 | 73 |
Short-term vacation rental The property's listing price of €1,250,000 significantly exceeds the fair value of €336,093, showcasing a gap of 73.1%, indicating the property is overpriced. Given the gross yield of 4.4% and the competitive tourist market in the Algarve, this villa may struggle to deliver strong returns expected in the short-term rental market. Buy-and-hold With the property valued well below its asking price, investors may find that a buy-and-hold strategy could be less rewarding due to the current overpricing at €1,250,000 compared to its fair value of €336,093. While the location benefits from tourist appeal, the significant price gap suggests that long-term capital appreciation may not meet investor expectations. Family rental The current listing of €1,250,000, compared to the fair value of €336,093, indicates that this property is overpriced, which could deter families looking for affordable long-term rental options. Although the 4-bed layout and good condition (80/100) may appeal to renters, the discrepancy in pricing raises concerns about reliability of cash flow in a family rental strategy.
Economic vulnerability With an economic stability score of 65, there is a moderate risk that local economic conditions could adversely affect tenant demand and rental income.
