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.
6-bedroom, 5-bathroom house of 698 m², built in 2005, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes an indoor pool that opens to expansive gardens and a separate apartment for guests or staff, enhancing its versatility and luxury living experience.
The valuation. The asking price of €1,495,000 is significantly above fair value at €860,137, representing an overpricing of €634,863 (42.5%). This renders the property an unwise investment given current market conditions.
Fair value modelled at €860,137 from the area baseline, adjusted for condition and location. Asking €1,495,000 sits €634,863 (42.5%) above — overpriced versus fair value.
Asking €1,495,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €2,406,006 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 (Condition 85 · Materials 90 · Room dimensions 88). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €2,406,006 + condition +€87,250 + location +€65,115 = modelled fair value of €860,137 (€1,232/m²), a €634,863 (42.5%) gap versus the €1,495,000 asking price.
Short-term vacation rental Despite the property being located in the Algarve, a primary tourist destination, its current listing price of €1,495,000 is 42.5% above the fair value, making it an overpriced investment for short-term vacation rentals. The projected yield of 0% further indicates that this property is unlikely to generate satisfactory returns, even in a region popular with tourists. Long-term rental The long-term rental strategy is not favorable given the property's asking price of €1,495,000, which significantly exceeds its fair value of €860,137, marking it as overpriced. With a lack of yield and the prevailing economic conditions tied closely to the tourism sector, this investment poses a significant risk for long-term rental income. Buy-and-hold Acquiring this property as a buy-and-hold investment is not advisable, as its listing price of €1,495,000 is excessively above the fair value of €860,137, classifying it as overpriced. The anticipated lack of return and the dependence on tourism for economic stability further diminishes the viability of holding this property for long-term appreciation.
Potential Economic Decline With an economic stability score of 65/100, there is a risk that the local economy may face downturns, potentially affecting rental income and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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