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, 1-bathroom apartment of 116 m², built in 1984, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment offers direct access to a pleasant garden and a functional layout with a fireplace, enhancing its cozy atmosphere and appeal for relaxation. Amenities: Situated within Rocha Brava Village Resort, it boasts multiple swimming pools, tennis courts, and lush landscaping conducive to leisure activities. Location: Close to iconic Algarve beaches and scenic trails, ideal for outdoor enthusiasts.
The valuation. The asking price of €275,000 is significantly above the fair value of €119,784, representing an overpricing of €155,216 (56.4%). This discrepancy indicates that the property is not a viable investment at its current listing. Buy-to-flip angle. A buy-to-flip strategy would be challenging due to the property's overvaluation, but potential resale could be considered if cosmetic upgrades are implemented to enhance appeal in the competitive Algarve market. Buy-to-let angle. With a gross yield of 0%, the property currently offers no rental income. However, the location near Albufeira may allow for a lucrative short-term vacation rental strategy, targeting tourism-driven demand.
Fair value modelled at €119,784 from the area baseline, adjusted for condition and location. Asking €275,000 sits €155,216 (56.4%) above — overpriced versus fair value.
Asking €275,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €399,852 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 74 · Materials 68 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €399,852 + condition -€7,250 + location +€9,410 = modelled fair value of €119,784 (€1,033/m²), a €155,216 (56.4%) gap versus the €275,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · ba39ff | Subject | €275,000 | €2,371 | — | 74 | 70 |
| Lagoa e Carvoeiro · 65a863 | Active | €350,000 | €3,608 | 52.2% | 70 | 70 |
| Lagoa e Carvoeiro · 90d7a1 | Active | €435,000 | €3,063 | 29.2% | 75 | 74 |
| Lagoa e Carvoeiro · 65a726 | Active | €330,000 | €3,708 | 56.4% | 68 | 71 |
| Lagoa e Carvoeiro · 38c66b | Active | €475,000 | €3,862 | 62.9% | 72 | 78 |
| Median comp | €392,500 | €3,658 | 54.3% | 71 | 73 |
Short-term vacation rental The property is overpriced at €275,000 with a fair value of €119,784, making it a poor candidate for a short-term vacation rental strategy due to the significant gap of 56.4%. Given that the gross yield is currently 0%, the investment fails to capitalize on the tourism-driven economy in the Algarve. Long-term rental With a fair value of €119,784 and a listing price of €275,000, this apartment is overpriced by 56.4%, making it an unfavorable option for long-term rental purposes. The neighbourhood ratings of 70/100 suggest that while the area has decent rental appeal, the current pricing undermines potential profitability. Buy-and-hold Despite being situated in a desirable area of Lagoa, the property is overpriced at €275,000 compared to its fair value of €119,784, which indicates limited upside potential for a buy-and-hold strategy. As the gross yield is 0%, holding onto this asset may not provide the returns necessary to justify the initial investment. Not ideal for: Student housing, Value-add renovation, Luxury market Due to the significant overvaluation of this property, it is not suitable for student housing or value-add renovation projects, which typically rely on a more favorable investment entry point. Additionally, the lack of appeal in the luxury market further cements its categorization as overpriced.
Economic Risk The economic stability score of 60/100 suggests potential vulnerability to market fluctuations that could impact rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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