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, 1-bathroom house of 138 m², built in 2007, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a previously used commercial space on the ground floor, offering versatile options for conversion or rental income potential.
The valuation. The asking price of €298,000 is significantly above fair value, which sits at €80,186, resulting in an overpricing of €217,814 (73.1%). This disparity indicates an unsustainable investment for potential buyers. Buy-to-flip angle. A buy-to-flip strategy is unfeasible due to excessive initial costs; the property’s average condition and dated finishes imply renovation costs would not yield a profitable resale in the current market. Buy-to-let angle. The property presents a challenging buy-to-let strategy, with a gross yield of 0%, indicating that rental income would not cover any investment costs, and the lack of local amenities may deter potential tenants.
Fair value modelled at €80,186 from the area baseline, adjusted for condition and location. Asking €298,000 sits €217,814 (73.1%) above — overpriced versus fair value.
Asking €298,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €394,956 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 42/100 (Condition 40 · Materials 45 · Room dimensions 45). Below-median condition lowers fair value versus a renovated baseline unit.
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 €394,956 + condition -€70,941 + location +€11,195 = modelled fair value of €80,186 (€581/m²), a €217,814 (73.1%) gap versus the €298,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 65a628 | Subject | €298,000 | €2,159 | — | 40 | 70 |
| rua de Che Lagoense, 79 | Active | €280,000 | €1,867 | 13.6% | 56 | 70 |
| rua do Asilo | Active | €465,000 | €2,193 | 1.6% | 48 | 72 |
| rua Eça de Queiroz | Active | €290,000 | €4,143 | 91.9% | 30 | 76 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 175.4% | 75 | 70 |
| Median comp | €377,500 | €3,168 | 46.7% | 52 | 71 |
Long-term rental The property, priced at €298,000, is significantly overpriced with a fair value of only €80,186, highlighting a 73.1% gap. This lack of alignment between price and fair value makes it an unwise choice for long-term rental investment, as it risks generating zero gross yield and offers limited financial returns. Short-term vacation rental Given its price point of €298,000, the property is not positioned well for short-term vacation rentals, especially since its fair value is significantly lower at €80,186. With zero gross yield and a mediocre condition rating of 42/100, investment in this area for vacation rentals seems misplaced and financially unviable. Buy-and-hold The buy-and-hold strategy for this property is questionable, primarily due to its listing price of €298,000, which is dangerously high compared to its fair value of just €80,186. This discrepancy suggests that holding on to this asset will likely yield no returns given its current valuation and 0% gross yield.
Economic Instability Risk The economic stability score of 65/100 indicates a potential for fluctuations in local economic conditions, which may affect tenant demand and rental income stability.
