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, 3-bathroom townhouse of 140 m², built in 2017, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property features a covered outdoor terrace ideal for entertaining, and a master bedroom terrace with both garden and sea views, enhancing its appeal as a holiday home.
The valuation. The asking price of €570,000 is significantly above the fair value of €171,994, resulting in an overpriced verdict by €398,006 or 69.8%. This raises concerns about the investment potential compared to local market standards.
Fair value modelled at €171,994 from the area baseline, adjusted for condition and location. Asking €570,000 sits €398,006 (69.8%) above — overpriced versus fair value.
Asking €570,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €482,580 (€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 74/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €482,580 + condition +€16,406 + location +€13,628 = modelled fair value of €171,994 (€1,229/m²), a €398,006 (69.8%) gap versus the €570,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · f35ec8 | Subject | €570,000 | €4,071 | — | 80 | 74 |
| Lagoa e Carvoeiro · 96c54c | Active | €740,000 | €4,774 | 17.3% | 85 | 73 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 14.3% | 76 | 77 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 29.0% | — | 71 |
| Lagoa e Carvoeiro · 6d5540 | Active | €695,000 | €5,697 | 39.9% | 75 | 74 |
| Median comp | €717,500 | €5,013 | 23.1% | 76 | 74 |
Short-term vacation rental Given the listing price of €570,000 significantly exceeds the fair value of €171,994, the property is overpriced at a gross yield of only 2.8%. This high price point limits potential short-term rental profitability in a competitive Algarve market driven by tourism. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unattractive, as it presents a gap of 69.8% above its fair value. The low yield of 2.8% further diminishes the potential long-term appreciation and income generation prospects. Family rental While the property's condition is rated 83/100, indicating good upkeep, the significant overvaluation at €570,000 compared to the fair value of €171,994 makes it a risky choice for family rental investment. With a modest yield of 2.8% and increasing competition in the housing market, it may not meet the financial expectations of potential landlords.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of adverse economic conditions affecting property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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