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.
0-bedroom, 0-bathroom mix_use_building of 390 m², energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This mixed-use building offers exceptional visibility for commercial activities with large street-facing windows, while the adaptable residential layouts provide versatility for future use or investments.
The valuation. The asking price of €2,500,000 is significantly above the fair value of €431,726, leading to an overvaluation of €2,068,274 (82.7%). This property is overpriced and does not present a sound investment at this price. Buy-to-flip angle. A resale strategy in this scenario would involve renovating the property to enhance its appeal, followed by listing it for a competitive price to capture the lucrative tourist market in the Algarve. Timely execution could help realize a profit, despite the initial overvaluation. Buy-to-let angle. With an estimated gross yield of 0%, this property does not currently support sustainable rental income; however, a long-term rental strategy could be viable by capitalizing on its location in a prime tourist area, attracting consistent monthly revenue from vacationers and expats alike.
Fair value modelled at €431,726 from the area baseline, adjusted for condition and location. Asking €2,500,000 sits €2,068,274 (82.7%) above — overpriced versus fair value.
Asking €2,500,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,344,330 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 80 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 78 · Amenities 75 · Economic 65 · Tenant Quality 68). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,344,330 + condition +€3,047 + location +€33,219 = modelled fair value of €431,726 (€1,107/m²), a €2,068,274 (82.7%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · a311fc | Subject | €2,500,000 | €6,410 | — | 72 | 71 |
| Estômbar e Parchal · 956e5b | Active | €695,000 | €4,484 | 30.1% | 80 | 72 |
| Lagoa e Carvoeiro · 90d75b | Active | €740,000 | €8,315 | 29.7% | — | 73 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 15.0% | 75 | 63 |
| rua do Pestana Golf Resort, 226 | Active | €435,000 | €7,373 | 15.0% | 75 | 65 |
| Median comp | €565,000 | €7,373 | 15.0% | 75 | 69 |
Short-term vacation rental Given the property's significant markup of 82.7% over its fair value, it is ill-positioned as a short-term vacation rental in a competitive market. With a yield of 0% and a notable condition score of 76/100, the potential for profitability remains compromised. Long-term rental The extensive gap between the listing price and fair value suggests that the property is overpriced for long-term rental investments, limiting cash flow opportunities. With a neighborhood score of 71/100, while there is some demand due to the tourist and expat influence, the investment is unlikely to yield satisfactory returns. Buy-and-hold As a buy-and-hold strategy, the property offers limited appeal with an 82.7% excess over fair value, heavily impeding its long-term appreciation potential. The lack of rental yield further complicates its attractiveness as a stable asset in the portfolio. Not ideal for student housing The property is overpriced at €2,500,000, making it an unsuitable investment for the student housing market, which typically requires more affordable pricing and steady demand. The gap in fair value indicates a lack of necessary affordability for this demographic. Not ideal for luxury market At its current price point, the property is clearly overpriced and does not align with the expectations of the luxury market, which demands unique features and high-end amenities. Thus, this investment would likely stagnate without the appeal that luxury buyers typically seek. Not ideal for industrial investments With an asking price that is wildly above fair value, the property is not a suitable candidate for industrial investments given the evident misalignment with market expectations. Industrial assets require operational efficiency and cost-effectiveness, which this property fails to deliver.
Tenant turnover risk Higher tenant turnover is possible given the economic stability score of 65 and tenant stability score of 68, indicating potential challenges in sustaining long-term occupancy and rent collection.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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