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.
2-bedroom, 2-bathroom apartment of 81 m², built in 1999, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts double aspect windows and a built-in wood-burning fireplace, enhancing both natural light and warmth in its spacious living area.
The valuation. The asking price of €395,000 is significantly above the fair value of €95,033, representing an overvaluation of €299,967, or 75.9%. This valuation places the property out of reach for many potential investors. Buy-to-flip angle. A buy-to-flip strategy would not be advisable given the substantial mark-up; resale would rely on market appreciation that seems unlikely in the current climate. Investors should expect challenges in obtaining a profitable price. Buy-to-let angle. The rental income strategy yields a gross yield of 2.7%, estimated at €889 per month, making it a low-return investment. While it can serve as a long-term rental, the profitability is constrained by the high initial purchase price.
Fair value modelled at €95,033 from the area baseline, adjusted for condition and location. Asking €395,000 sits €299,967 (75.9%) above — overpriced versus fair value.
Asking €395,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €279,207 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 76 · Materials 84 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €279,207 + condition +€6,328 + location +€6,571 = modelled fair value of €95,033 (€1,173/m²), a €299,967 (75.9%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 1e6002 | Subject | €395,000 | €4,877 | — | 76 | 70 |
| Lagoa e Carvoeiro · 6d5455 | Active | €360,000 | €3,673 | 24.7% | 75 | 71 |
| Lagoa e Carvoeiro · bf2856 | Active | €430,000 | €3,805 | 22.0% | 70 | 69 |
| Lagoa e Carvoeiro · 90d7a1 | Active | €435,000 | €3,063 | 37.2% | 75 | 74 |
| Lagoa e Carvoeiro · 3893e8 | Active | €430,000 | €4,725 | 3.1% | 74 | 71 |
| Median comp | €430,000 | €3,739 | 23.3% | 75 | 71 |
Short-term vacation rental The property's potential for short-term vacation rentals is hindered by its significant pricing gap of 75.9% above fair value, which limits its attractiveness to prospective investors. With a gross yield of only 2.7%, this strategy may not provide the expected returns in a tourism-driven area like Algarve. Long-term rental Investing in this 2-bed apartment for long-term rental purposes is not advisable given its inflated price of €395,000, far exceeding the fair value of €95,033. The low yield of 2.7% further diminishes any financial benefit, making it a less-than-optimal choice for stable rental income in the neighbourhood. Buy-and-hold Holding onto this property as a long-term investment appears unwise due to its substantial overvaluation at 75.9% above fair value. The combination of a lukewarm gross yield and a less favorable condition score implies that potential capital appreciation would likely fall short of expectations. Not ideal for: Student housing, Industrial investment, Luxury market
Economic Vulnerability The economic stability score of 60/100 indicates potential fluctuations in local economic conditions that could affect cash flow and value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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