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, 2-bathroom house of 155 m², built in 1982, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features two separate entrances, including an automatic vehicle gate, and has the potential for a 12 x 4 m pool on the southern plot side.
The valuation. The asking price of €615,000 is significantly above the fair value of €136,950, representing a staggering premium of €478,050 (77.7%). Verdict: overpriced. Buy-to-flip angle. A buy-to-flip strategy would require substantial renovations to update the dated components and enhance market appeal, but given the high acquisition cost, potential profit margins may be limited. Buy-to-let angle. With an estimated gross yield of 3.1%, generating approximately €1,589 per month, this property could serve as a residential rental, though its pricing makes for a less attractive long-term investment.
Fair value modelled at €136,950 from the area baseline, adjusted for condition and location. Asking €615,000 sits €478,050 (77.7%) above — overpriced versus fair value.
Asking €615,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €505,765 (€3,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 (Condition 60 · Materials 65 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 78 · Amenities 65 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €505,765 + condition -€33,422 + location +€13,202 = modelled fair value of €136,950 (€884/m²), a €478,050 (77.7%) gap versus the €615,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · f35f4c | Subject | €615,000 | €3,968 | — | 60 | 71 |
| rua Aldeia das Chaminés | Active | €795,000 | €4,184 | 5.5% | 65 | 65 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 22.9% | 70 | 70 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 49.9% | 75 | 70 |
| Lagoa e Carvoeiro · 6d5568 | Active | €1,290,000 | €3,057 | 23.0% | — | 64 |
| Median comp | €1,242,500 | €4,531 | 14.2% | 70 | 68 |
Short-term vacation rental The property is overpriced at €615,000, significantly exceeding its fair value of €136,950, indicating a 77.7% gap. With a low gross yield of 3.1%, the return potential for short-term vacation rentals in this market does not justify the high entry cost. Buy-and-hold Investing in this property as a buy-and-hold strategy seems unwise given its valuation at €615,000, which is substantially above the fair value of €136,950, presenting a 77.7% gap. The current gross yield of 3.1% does not provide attractive long-term investment prospects relative to market norms. Family rental The prospect of utilizing this property as a family rental is diminished by its overrated listing price of €615,000, compared to a fair value estimate of €136,950, creating an unsustainable 77.7% disparity. Furthermore, with a condition score of 61/100 and a neighbourhood rating of 71/100, the overall investment appeal is considerably weakened.
Economic and Tenant Volatility The property faces a risk of fluctuations in rental income due to both economic stability and tenant stability scores being at a moderate 70/100, indicating potential vulnerability to economic downturns and tenant turnover.
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