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, 5-bathroom country_house of 118 m², energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property includes a separate 2-bedroom guesthouse and a rustic area filled with mature trees, ideal for growing your own food or starting a mini farm.
The valuation. The asking price of €695,000 is significantly above the fair value of €132,543, representing an overvaluation of €562,457 (80.9%). This discrepancy indicates that the property is overpriced in the current market.
Fair value modelled at €132,543 from the area baseline, adjusted for condition and location. Asking €695,000 sits €562,457 (80.9%) above — overpriced versus fair value.
Asking €695,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €337,716 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 72 · Materials 80 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · 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 €337,716 + condition +€3,319 + location +€9,572 = modelled fair value of €132,543 (€1,123/m²), a €562,457 (80.9%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 0dcf2c | Subject | €695,000 | €5,890 | — | 72 | 70 |
| Lagoa e Carvoeiro · 42017e | Active | €695,000 | €5,890 | 0% | 76 | 70 |
| rua Covas Areia | Active | €875,000 | €2,814 | 52.2% | 75 | 76 |
| Lagoa e Carvoeiro · cfe058 | Active | €1,350,000 | €5,947 | 1.0% | 77 | 72 |
| rua de Vala | Active | €835,000 | €5,880 | 0.2% | 78 | 64 |
| Median comp | €855,000 | €5,885 | 0.1% | 77 | 71 |
Short-term vacation rental The property is overpriced at €695,000 compared to its fair value of €132,543, indicating a significant disconnection in market pricing. With a gross yield of only 3.2%, it does not provide an attractive return on investment for short-term rentals despite being located in a tourist-driven area like the Algarve. Long-term rental While long-term rental could be a stable income source, the high price relative to the fair value suggests that achieving profitable returns is improbable. The property's yield of 3.2% further highlights its lack of attractiveness for this strategy, making it less appealing as a long-term investment in the current market. Buy-and-hold The buy-and-hold strategy is compromised by the significant 80.9% gap from fair value, marking this property as a lengthy financial commitment without sufficient return prospects. Its gross yield of 3.2% reflects suboptimal performance potential, making it unwise to hold this asset for long-term appreciation in the current market context.
Potential tenant turnover There is a risk of higher tenant turnover due to the economic stability score of 65/100, which may lead to increased vacancy rates and costs.
