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 144 m², built in 1986, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes a rooftop terrace perfect for sunset views and a barbecue area adjacent to the pool for outdoor entertaining. Additional Context: The modern finishes and equipped kitchen enhance functionality and style.
The valuation. The asking price of €670,000 is significantly above the fair value of €167,411, representing an overpricing of €502,589 (75.0%). This discrepancy indicates the property is not competitively priced within the current market landscape.
Fair value modelled at €167,411 from the area baseline, adjusted for condition and location. Asking €670,000 sits €502,589 (75.0%) above — overpriced versus fair value.
Asking €670,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €496,368 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 76 · Materials 79 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 77/100 (Housing Market 80 · Amenities 85 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €496,368 + condition +€5,625 + location +€15,770 = modelled fair value of €167,411 (€1,163/m²), a €502,589 (75.0%) gap versus the €670,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 261eb2 | Subject | €670,000 | €4,653 | — | 76 | 77 |
| Lagoa e Carvoeiro · 96c54c | Active | €740,000 | €4,774 | 2.6% | 85 | 73 |
| Lagoa e Carvoeiro · f35ec8 | Active | €570,000 | €4,071 | 12.5% | 80 | 74 |
| Lagoa e Carvoeiro · 90d75b | Active | €740,000 | €8,315 | 78.7% | — | 73 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 12.9% | — | 71 |
| Median comp | €740,000 | €5,013 | 7.7% | 83 | 73 |
Short-term vacation rental This property’s listing price of €670,000 represents a significant 75.0% premium over its fair value of €167,411, making it a less attractive option for short-term vacation rentals in a tourist-heavy region. With a gross yield of only 3.6%, the return does not justify the high investment, indicating that it is overpriced. Buy-and-hold Investing in this property at €670,000, given its fair value of €167,411, suggests a significant risk, as it is overpriced by 75.0%. The neighborhood's good condition score of 78/100 may support long-term growth, but the overpriced nature limits potential returns and poses an investment challenge. Luxury market While the property is located in a desirable Algarve region, its listing price of €670,000 exceeds its fair market value of €167,411 by 75.0%, rendering it overpriced in the luxury market segment. Potential buyers should reconsider this investment as high pricing may lead to difficulties in achieving profitable returns in a competitive luxury landscape.
Potential Economic Downturn The economic stability score of 70/100 indicates a moderate risk of market fluctuations that could impact rental income or property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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