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.
5-bedroom, 3-bathroom house of 314 m², built in 1992, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property offers a heated pool and a versatile independent annex, ideal for guest accommodation or rental income, ensuring privacy and comfort in a serene setting.
The valuation. The asking price of €1,895,000 is significantly above its fair value of €362,700, resulting in an overpricing of €1,532,300 (80.9%). This discrepancy suggests the property is not a viable investment at its current asking price.
Fair value modelled at €362,700 from the area baseline, adjusted for condition and location. Asking €1,895,000 sits €1,532,300 (80.9%) above — overpriced versus fair value.
Asking €1,895,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,082,358 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,082,358 + condition +€13,737 + location +€30,566 = modelled fair value of €362,700 (€1,155/m²), a €1,532,300 (80.9%) gap versus the €1,895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 95705d | Subject | €1,895,000 | €6,035 | — | 75 | 74 |
| Lagoa e Carvoeiro · 89366c | Active | €1,895,000 | €5,574 | 7.6% | 80 | 72 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 13.0% | — | 71 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 22.9% | 76 | 77 |
| Lagoa e Carvoeiro · 25f63b | Active | €890,000 | €1,978 | 67.2% | 72 | 70 |
| Median comp | €1,070,000 | €4,953 | 17.9% | 76 | 72 |
Short-term vacation rental The property is overpriced at €1,895,000, significantly exceeding its fair value of €362,700, which raises concerns about return on investment potential. With a gross yield of only 1.1%, the financial metrics do not support a lucrative short-term rental strategy in the competitive Algarve market. Buy-and-hold Given the significant gap of 80.9% over fair value, investing in this property for long-term appreciation is not advisable as it currently stands. The neighborhood ratings of 74/100 and a condition score of 78/100 do not justify the elevated price when potential capital gains are unlikely. Family rental While family rentals can offer stable cash flow, the property’s €1,895,000 price tag is excessively high compared to its estimated value of €362,700. A gross yield of just 1.1% suggests that even with strong tenant demand, this investment does not provide a favorable return for families seeking quality homes in the Algarve. Not ideal for: Student housing, Industrial investment.
Economic Vulnerability With an economic stability score of 65/100, there is a moderate risk of local economic downturn, which could impact property performance and rental income.
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