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.
4-bedroom, 3-bathroom country_house of 240 m², built in 1998, energy rating A. Located on rua de Lobito, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This estate features a large plot with a leasing arrangement for avocado cultivation, providing the owner with a supplementary income while enjoying spacious outdoor living.
The valuation. The asking price of €1,390,000 significantly exceeds the fair value of €293,802, illustrating a discrepancy of €1,096,198 or 78.9%. This property is clearly overpriced. Buy-to-flip angle. Given its high-end finishes and fixtures, investors might consider a quick renovation and resale strategy to capitalize on market demand, though the current pricing poses challenges. Buy-to-let angle. With an estimated gross yield of 3.2% at €3,707/month, the property may offer moderate returns through short-term vacation or family rentals, though initial costs are elevated due to its overpriced status.
Fair value modelled at €293,802 from the area baseline, adjusted for condition and location. Asking €1,390,000 sits €1,096,198 (78.9%) above — overpriced versus fair value.
Asking €1,390,000 versus the rua de Lobito area baseline of €827,280 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 (Condition 85 · Materials 90 · Room dimensions 87). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua de Lobito
Area baseline €827,280 + condition +€30,000 + location +€20,442 = modelled fair value of €293,802 (€1,224/m²), a €1,096,198 (78.9%) gap versus the €1,390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Lobito | Subject | €1,390,000 | €5,792 | — | 85 | 71 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 28.4% | 82 | 80 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 19.7% | 76 | 77 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 53.2% | 82 | 73 |
| Lagoa e Carvoeiro · d7a496 | Active | €1,636,000 | €4,305 | 25.7% | 75 | 74 |
| Median comp | €822,250 | €4,479 | 22.7% | 79 | 76 |
Short-term vacation rental With a significant gap of 78.9% from its fair value, this property is overpriced, making it less attractive for short-term vacation rental investments. Additionally, the gross yield of 3.2% does not justify the high upfront cost in a competitive tourism-driven market. Family rental The property’s high price tag at €1,390,000, compared to its fair value, signals that it is overpriced for potential family rental opportunities. Despite the good condition rating of 87/100, the elevated acquisition cost may deter long-term tenants looking for reasonable rents. Buy-and-hold As an investment for buy-and-hold strategy, this property is overpriced, with a 78.9% divergence from its fair value. The disappointing gross yield of 3.2% further diminishes its attractiveness for long-term buy-and-hold investors in a market characterized by both tourism and resident demand.
Economic Vulnerability The property has a moderate economic stability score of 65/100, indicating potential risks due to fluctuating market conditions that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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