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.
1-bedroom, 1-bathroom house of 70 m², built in 2026. Located on rua Eça de Queiroz, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Unique Feature: The property showcases a stylish wooden mezzanine with a Velux window, enhancing both natural light and potential living space versatility. Condition Note: Extensive renovation underway, with notable unfinished areas requiring completion.
The valuation. The asking price of €290,000 is significantly above fair value, which is assessed at €35,706, making it overpriced by €254,294 (87.7%). Such a disparity suggests limited room for appreciation in the current market dynamics.
Fair value modelled at €35,706 from the area baseline, adjusted for condition and location. Asking €290,000 sits €254,294 (87.7%) above — overpriced versus fair value.
Asking €290,000 versus the rua Eça de Queiroz area baseline of €200,340 (€2,862/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 36/100 (Condition 30 · Materials 40 · Room dimensions 42). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua Eça de Queiroz
Area baseline €200,340 + condition -€42,656 + location +€7,382 = modelled fair value of €35,706 (€510/m²), a €254,294 (87.7%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Eça de Queiroz | Subject | €290,000 | €4,143 | — | 30 | 76 |
| rua do Asilo | Active | €465,000 | €2,193 | 47.1% | 48 | 72 |
| rua do Mato Serrão | Active | €535,000 | €5,350 | 29.1% | — | 70 |
| Lagoa e Carvoeiro · 65a628 | Active | €298,000 | €2,159 | 47.9% | 40 | 70 |
| rua de Che Lagoense, 79 | Active | €280,000 | €1,867 | 54.9% | 56 | 70 |
| Median comp | €381,500 | €2,176 | 47.5% | 48 | 70 |
Short-term vacation rental Despite the attractive location near popular Algarve tourist destinations, the property is overpriced by 87.7% compared to its fair value of €35,706, making it a less favorable option for short-term vacation rentals. Additionally, with a low condition rating of 36/100, potential guests may be deterred, impacting occupancy and revenue. Long-term rental While the neighbourhood boasts a relatively good score of 76/100, the significant gap of 87.7% from fair value indicates that this 1-bed house is overpriced and may not yield satisfactory returns for long-term rentals. The gross yield of only 3.3% further reinforces the unsustainable nature of this investment when compared to prevailing market rates. Buy-and-hold As an investment in buy-and-hold, the property appears overpriced with a fair value of €35,706 overshadowed by a listing price of €290,000, leading to concerns about future appreciation. The low condition score coupled with the high gap from fair value suggests significant risks that could undermine long-term profitability. Not ideal for: Student housing, Luxury market Given its overpriced status and poor condition, this property is clearly not suited for student housing, which typically seeks affordable and functional options. The luxury market will likely be unimpressed with the valuation and quality, steering potential upscale buyers away.
Economic downturn risk With an economic stability score of 65/100, there is a potential risk that adverse economic conditions could negatively impact property values and rental income stability.
