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, 1-bathroom apartment of 89 m², built in 1975, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts a common rooftop terrace for 360-degree views of the sea and Monchique mountain, ideal for sunset enjoyment and relaxation. Additional Context: Fully furnished with a south-facing terrace.
The valuation. The asking price of €330,000 is significantly above fair value, which stands at €90,874, resulting in an overpricing of €239,126 (72.5%). Buy-to-flip angle. A wholesale strategy could focus on cosmetic upgrades to enhance appeal, leveraging the good quality materials for a potential resale at a higher price point. Buy-to-let angle. The projected rental income of approximately €1,320/month offers a gross yield of 4.8%, making long-term rental a viable option despite the high purchase price.
Fair value modelled at €90,874 from the area baseline, adjusted for condition and location. Asking €330,000 sits €239,126 (72.5%) above — overpriced versus fair value.
Asking €330,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €254,718 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 68 · Materials 72 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €254,718 + condition -€6,953 + location +€7,581 = modelled fair value of €90,874 (€1,021/m²), a €239,126 (72.5%) gap versus the €330,000 asking price.
Short-term vacation rental Given the high price point of €330,000, this property does not present an attractive option for short-term vacation rental investment, especially with a significant gap of 72.5% from fair value. The gross yield of 4.8% is undermined by the inflated purchase price, which is unlikely to deliver competitive returns in a seasonally driven market. Long-term rental For long-term rental prospects, the property's listing price of €330,000 translates to a yield of only 4.8%, indicating that the property is overpriced in comparison to its fair value of €90,874. The imbalance between the market price and rental income suggests that this option may not provide sufficient cash flow to justify the high investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable due to its significant overpricing at €330,000 versus a fair value of €90,874. The substantial gap of 72.5% from fair value and low yield of 4.8% signal that the long-term appreciation potential may not be sufficient to offset the initial high cost. Not ideal for The property is not well-suited for student housing or the luxury market, which require specific pricing dynamics that this overpriced listing does not meet. Additionally, value-add renovation strategies are impractical given the already inflated market value relative to the condition rating of 70/100 and the neighborhood score of 71/100.
Tenant turnover risk With a tenant stability score of 65/100, there is a higher potential for tenant turnover, leading to increased vacancy rates and potential revenue loss.
