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.
6-bedroom, 4-bathroom country_house of 340 m², energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a unique wooden spiral staircase leading to a mezzanine office/library, as well as double wrought iron electric gates for added security and privacy.
The valuation. The asking price of €1,895,000 stands at a significant €1,480,057 (78.1%) above the fair value of €414,943, indicating the property is overpriced. This discrepancy suggests potential challenges in achieving a profitable exit.
Fair value modelled at €414,943 from the area baseline, adjusted for condition and location. Asking €1,895,000 sits €1,480,057 (78.1%) above — overpriced versus fair value.
Asking €1,895,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,171,980 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,171,980 + condition +€39,844 + location +€30,339 = modelled fair value of €414,943 (€1,220/m²), a €1,480,057 (78.1%) gap versus the €1,895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 89366c | Subject | €1,895,000 | €5,574 | — | 80 | 72 |
| Lagoa e Carvoeiro · 95705d | Active | €1,895,000 | €6,035 | 8.3% | 75 | 74 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 5.8% | — | 71 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 51.4% | 82 | 73 |
| Lagoa e Carvoeiro · 49b8f5 | Active | €5,000,000 | €13,587 | 143.8% | 75 | 73 |
| Median comp | €1,572,500 | €5,644 | 1.3% | 75 | 73 |
Short-term vacation rental\nThe property at Lagoa e Carvoeiro is priced at €1,895,000, which is significantly above its fair value of €414,943, indicating it is overpriced by 78.1%. With a gross yield of only 1.6%, this investment strategy may not generate sufficient returns to justify the high acquisition cost.\n\nLong-term rental\nInvesting in long-term rental for this property may not be advisable as it is priced at €1,895,000, well above the fair value of €414,943, showing that it is overpriced by 78.1%. The low gross yield of 1.6% further suggests that long-term rental income will not offset the elevated purchase price, making it a less attractive option.\n\nBuy-and-hold\nWith the current listing price of €1,895,000 compared to a fair value of €414,943, this property is clearly overpriced by 78.1%. Given the low yield of 1.6% and the potential challenges in the housing market, a buy-and-hold strategy may not provide the desired long-term returns during the property’s holding period.
Economic Downturn Risk The economic stability score of 60/100 indicates a potential vulnerability to downturns, which may impact rental income and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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