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, 2-bathroom apartment of 78 m², built in 1992, energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment includes a private terrace perfect for outdoor relaxation while being located just minutes from the picturesque beaches of Lagoa and Carvoeiro.
The valuation. The asking price of €385,000 is significantly above the fair value of €94,537, representing an overpricing of €290,463 (75.4%). This discrepancy suggests that potential investors may find better value elsewhere.
Fair value modelled at €94,537 from the area baseline, adjusted for condition and location. Asking €385,000 sits €290,463 (75.4%) above — overpriced versus fair value.
Asking €385,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €223,236 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 85 · Materials 82 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €223,236 + condition +€9,750 + location +€5,695 = modelled fair value of €94,537 (€1,212/m²), a €290,463 (75.4%) gap versus the €385,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · f365cf | Subject | €385,000 | €4,936 | — | 85 | 68 |
| Lagoa e Carvoeiro · 1e6002 | Active | €395,000 | €4,877 | 1.2% | 76 | 70 |
| Lagoa e Carvoeiro · 6d5455 | Active | €360,000 | €3,673 | 25.6% | 75 | 71 |
| Lagoa e Carvoeiro · 65a726 | Active | €330,000 | €3,708 | 24.9% | 68 | 71 |
| Lagoa e Carvoeiro · bf2856 | Active | €430,000 | €3,805 | 22.9% | 70 | 69 |
| Median comp | €377,500 | €3,757 | 23.9% | 73 | 71 |
Short-term vacation rental Given that the property listing at €385,000 is 75.4% above its fair value of €94,537, it is difficult to justify an investment in short-term vacation rentals. The gross yield of 3.7% does not compensate for the significant overpricing in a market predominantly driven by tourism. Family rental Investing in family rental in this property is not advisable as it is overpriced compared to its fair value; at €385,000, the gap of 75.4% undermines potential returns. The 3.7% yield in this context does not align with the high entry price, resulting in diminishing long-term growth prospects for family tenants. Buy-and-hold The buy-and-hold strategy is compromised by the property's considerable overpricing at €385,000, making it a poor investment relative to its fair value of €94,537. The attractive condition rating of 84/100 cannot offset the unappealing 3.7% gross yield against the market's inflated price expectations.
Economic Vulnerability The economic stability score of 60/100 suggests potential market fluctuations that could negatively impact rental demand and property value.
