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, 3-bathroom house of 131 m², built in 2000, energy rating A. Located on urbanização das Sesmarias, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property is uniquely situated near interconnected ponds, enhancing its tranquil outdoor atmosphere, with easy access to extensive resort amenities just steps away.
The valuation. The asking price of €974,500 is significantly higher than the fair value of €165,149, creating a disparity of €809,351 (83.1%). This property is overpriced and would require careful financial consideration.
Fair value modelled at €165,149 from the area baseline, adjusted for condition and location. Asking €974,500 sits €809,351 (83.1%) above — overpriced versus fair value.
Asking €974,500 versus the urbanização das Sesmarias area baseline of €374,922 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 82 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 80/100 (Housing Market 85 · Amenities 80 · Economic 75 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
urbanização das Sesmarias
Area baseline €374,922 + condition +€16,375 + location +€15,940 = modelled fair value of €165,149 (€1,261/m²), a €809,351 (83.1%) gap versus the €974,500 asking price.
Short-term vacation rental With a gross yield of only 2.2%, the property’s price of €974,500 is significantly misaligned with its fair value of €165,149, indicating a discrepancy of 83.1%. While the coastal location may attract tourists, the high purchase price severely limits potential profitability in the short-term rental market. Buy-and-hold At the listed price, this 2-bed house does not present a viable buy-and-hold investment opportunity, given the 83.1% gap from its fair value of €165,149. Though the neighborhood offers strong economic stability, the property’s inflated cost detracts from its long-term capital appreciation prospects. Family rental The property’s listing at €974,500 suggests a misalignment with local rental demand, reflected in the 2.2% gross yield and the considerable gap from its fair value. Families seeking rental options in the area may find more attractive and affordable alternatives, making this investment less appealing for long-term rental income.
Economic downturn risk With an economic stability score of 75/100, there is a potential risk that economic fluctuations could adversely impact property values and rental income.
