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.
4-bedroom, 4-bathroom villa of 238 m², built in 1995, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Feature: This villa features a fully equipped summer kitchen with a built-in traditional wood oven, perfect for outdoor entertaining in a secluded natural setting.
The valuation. The asking price of €1,250,000 is significantly above the fair value of €280,198, representing an excessive premium of €969,802 (77.6%). This villa is considered overpriced based on current market conditions.
Fair value modelled at €280,198 from the area baseline, adjusted for condition and location. Asking €1,250,000 sits €969,802 (77.6%) above — overpriced versus fair value.
Asking €1,250,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €681,156 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 76). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €681,156 + condition +€18,594 + location +€20,272 = modelled fair value of €280,198 (€1,177/m²), a €969,802 (77.6%) gap versus the €1,250,000 asking price.
Short-term vacation rental The property, listed at €1,250,000, is significantly overpriced compared to its fair value of €280,198, presenting a 77.6% gap that impacts its profitability. Even with the area’s tourism appeal, the gross yield of 2.4% does not justify the investment given the seasonal fluctuations in rental demand. Buy-and-hold Investing in this villa for the long-term holds little promise, as the massive 77.6% gap from fair value highlights a critical overpricing for a buy-and-hold strategy. The expected gross yield of 2.4% is insufficient to provide an adequate return on such an inflated purchase price. Family rental Acquiring this property for family rental purposes is not advisable given its current valuation at €1,250,000, which is starkly above the fair value of €280,198, indicating a clear overpricing. The low gross yield of 2.4% further diminishes the potential attractiveness of this investment in the familial rental market.
Economic Instability Risk With an economic stability score of 60/100, there is a moderate risk of economic fluctuations that could impact rent prices and property value.
