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 house of 227 m², built in 2005, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts landscaped gardens and terraces with unobstructed views of the golf course, enhancing both privacy and outdoor leisure opportunities. Condition Notes: Exhibits strong construction quality and high-end finishes, with minimal signs of wear.
The valuation. The asking price of €1,350,000 is significantly above the fair value of €268,877, representing an inflated premium of €1,081,123 (80.1%). This property is clearly overpriced in the current market. Buy-to-flip angle. A buy-to-flip strategy may face challenges due to the high acquisition cost; resale would need to exceed €1,350,000 to yield profits. Therefore, this approach appears imprudent given the current valuation. Buy-to-let angle. The gross yield of 1.7%, translating to an estimated rental income of €1,912/month, suggests limited cash flow potential for a buy-to-let strategy. Given the asking price, returns may not justify the investment.
Fair value modelled at €268,877 from the area baseline, adjusted for condition and location. Asking €1,350,000 sits €1,081,123 (80.1%) above — overpriced versus fair value.
Asking €1,350,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €649,674 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 77 · Materials 82 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 70 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €649,674 + condition +€18,444 + location +€20,256 = modelled fair value of €268,877 (€1,184/m²), a €1,081,123 (80.1%) gap versus the €1,350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · cfe058 | Subject | €1,350,000 | €5,947 | — | 77 | 72 |
| Estômbar e Parchal · f362a7 | Active | €1,350,000 | €5,947 | 0% | 80 | 63 |
| Estômbar e Parchal · 735450 | Active | €1,350,000 | €5,947 | 0% | 78 | 72 |
| Estômbar e Parchal · 956c70 | Active | €1,350,000 | €5,947 | 0% | 78 | 67 |
| rua Covas Areia | Active | €875,000 | €2,814 | 52.7% | 75 | 76 |
| Median comp | €1,350,000 | €5,947 | 0% | 78 | 70 |
Short-term vacation rental The property’s gap of 80.1% vs fair value indicates it is significantly overpriced, making it a less attractive option for short-term vacation rentals given the low yield of 1.7%. Given the area’s popularity as a tourist destination, potential returns may not justify the high acquisition cost. Family rental A family rental strategy is unlikely to be successful due to the property being overpriced with a considerable gap from its fair value. The gross yield of 1.7% further suggests that rental returns would be insufficient to equate to the significant initial investment. Buy-and-hold The buy-and-hold strategy is compromised by the property being overpriced, making it a less viable long-term investment. The current yield of 1.7% does not provide an attractive return profile, leading to concerns over long-term capital appreciation potential. Not ideal for student housing This property is not suited for student housing due to its significant overpricing, which limits affordability for the target market. Additionally, the 80.1% gap from fair value poses a risk of lower occupancy rates. Not ideal for industrial development The location is not conducive to industrial development, and the property’s high valuation does not allow room for productive investment. Its significant overpricing further restricts development feasibility in this context. Not ideal for luxury market The property’s current pricing does not align with typical luxury market offerings, as it is overpriced by a substantial margin. This discrepancy may deter discerning buyers seeking premium properties in desirable locales.
Economic Vulnerability The property has an economic stability score of 65/100, indicating potential susceptibility to local economic downturns which could affect tenant retention and rental income.
