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 2022, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a dedicated barbecue area, perfect for outdoor gatherings, and is situated within a secure resort that offers 24-hour maintenance and gardening services.
The valuation. The asking price of €740,000 is significantly above the fair value of €191,005, marking an excess of €548,995 or 74.2%. This property is overpriced for the current market conditions.
Fair value modelled at €191,005 from the area baseline, adjusted for condition and location. Asking €740,000 sits €548,995 (74.2%) above — overpriced versus fair value.
Asking €740,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €534,285 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 85 · Materials 86 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €534,285 + condition +€19,375 + location +€14,460 = modelled fair value of €191,005 (€1,232/m²), a €548,995 (74.2%) gap versus the €740,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 96c54c | Subject | €740,000 | €4,774 | — | 85 | 73 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 2.5% | 76 | 77 |
| Lagoa e Carvoeiro · f35ec8 | Active | €570,000 | €4,071 | 14.7% | 80 | 74 |
| Lagoa e Carvoeiro · 25f63b | Active | €890,000 | €1,978 | 58.6% | 72 | 70 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 10.0% | — | 71 |
| Median comp | €780,000 | €4,362 | 8.6% | 76 | 73 |
Short-term vacation rental The current listing price of €740,000 significantly exceeds the fair value of €191,005, resulting in a 74.2% gap that suggests the property is overpriced for short-term rental potential. With a gross yield of only 3.2%, this property may struggle to provide an adequate return on investment, particularly in a seasonal market like Lagoa e Carvoeiro. Buy-and-hold Investing in this property as a buy-and-hold strategy poses a financial risk given its current valuation of €740,000 against a fair value of €191,005, indicating it is overpriced. The low gross yield of 3.2% further complicates its attractiveness for long-term equity gain, especially in a fluctuating economic environment. Long-term rental With a listing price of €740,000 that is significantly above the fair value of €191,005, the property is overpriced for long-term rental investments. The gross yield of 3.2% does not sufficiently compensate for this high acquisition cost, raising concerns about sustainable rental income in a competitive housing market. Not ideal for: The property is not suitable for student housing, the luxury market, or industrial investment due to its excessive pricing and yield concerns.
Economic Vulnerability The economic stability score of 65 indicates potential fluctuations in local economic conditions that could adversely affect property demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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