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, 4-bathroom country_house of 118 m², energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a self-contained guesthouse with its own entrance, ideal for hosting visitors or for rental income, plus a spacious rustic area perfect for a mini farm.
The valuation. The asking price of €695,000 is substantially above the fair value of €135,677, representing a discrepancy of €559,323 or 80.5%. The property is deemed overpriced.
Fair value modelled at €135,677 from the area baseline, adjusted for condition and location. Asking €695,000 sits €559,323 (80.5%) 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 79/100 (Condition 76 · Materials 80 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €337,716 + condition +€6,453 + location +€9,572 = modelled fair value of €135,677 (€1,150/m²), a €559,323 (80.5%) gap versus the €695,000 asking price.
Short-term vacation rental The potential for short-term vacation rentals appears limited given the high asking price of €695,000, significantly over fair value at €135,677. With a gross yield of only 3.2%, this investment does not favorably align with the typical performance expectations in the tourism-focused Algarve market. Long-term rental Investing in long-term rentals might not be advisable as the property is priced at €695,000 while the fair value stands at only €135,677, presenting a troubling gap of 80.5%. Given the property’s utility score of 79/100, it may attract tenants but is unlikely to generate meaningful capital appreciation in this overpriced scenario. Buy-and-hold The buy-and-hold strategy is less attractive here, as the property is overvalued at €695,000 compared to its fair value of €135,677. Despite its decent condition and neighborhood scores, the high purchase price greatly diminishes the potential for long-term appreciation or positive cash flow in the current economic environment.
Economic and Tenant Stability Risk With both economic stability and tenant stability scores at 65/100, there is a heightened risk of fluctuating demand and potential vacancy rates due to ongoing economic uncertainties and tenant turnover.
