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 212 m², built in 1978, energy rating C. Located on rua do Asilo, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Unique feature: The property is uniquely positioned with a dual-purpose ground floor for commercial use, enhancing investment potential in the desirable Lagoa e Carvoeiro area.
The valuation. The asking price of €465,000 is significantly above the fair value of €156,041, exceeding it by €308,959 (66.4%). This property is clearly overpriced.
Fair value modelled at €156,041 from the area baseline, adjusted for condition and location. Asking €465,000 sits €308,959 (66.4%) above — overpriced versus fair value.
Asking €465,000 versus the rua do Asilo area baseline of €606,744 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 52/100 (Condition 48 · Materials 55 · Room dimensions 62). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 65 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua do Asilo
Area baseline €606,744 + condition -€77,844 + location +€18,917 = modelled fair value of €156,041 (€736/m²), a €308,959 (66.4%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Asilo | Subject | €465,000 | €2,193 | — | 48 | 72 |
| rua de Che Lagoense, 79 | Active | €280,000 | €1,867 | 14.9% | 56 | 70 |
| Lagoa e Carvoeiro · 65a628 | Active | €298,000 | €2,159 | 1.5% | 40 | 70 |
| rua Eça de Queiroz | Active | €290,000 | €4,143 | 88.9% | 30 | 76 |
| rua do Pestana Golf Resort | Active | €1,300,000 | €5,652 | 157.7% | 70 | 80 |
| Median comp | €294,000 | €3,151 | 43.7% | 48 | 73 |
Short-term vacation rental The property is overpriced relative to its fair value, suggesting that potential returns from short-term vacation rentals will be diminished due to the high entry cost. With a gross yield of only 5%, this investment strategy may struggle to meet investor expectations in a competitive tourist market. Buy-and-hold Investing in this property for a buy-and-hold strategy is questionable, as the fair value is significantly lower than asking price, indicating that long-term appreciation might not be viable. While the location benefits from tourism, the 66.4% gap from fair value raises concerns about the property’s ability to appreciate over time. Family rental Acquiring this home for family rental purposes could lead to financial strain, as the property is priced 66.4% above its fair value, limiting cash flow potential. Furthermore, the condition score of 52/100 and a moderate neighborhood rating suggest that ongoing maintenance and tenant satisfaction may pose challenges.
Economic Vulnerability With an economic stability score of 65/100, the investment may be subject to fluctuations that could impact rental income, making it less reliable compared to properties in economically stronger areas.
