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 2002, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a guesthouse with a private garden and paths leading to the heated pool, offering enhanced privacy and leisure opportunities.
The valuation. The asking price of €1,795,000 sits significantly above fair value, which is €380,654, indicating that the property is overpriced by €1,414,346 (78.8%). This presents a considerable barrier for potential investors.
Fair value modelled at €380,654 from the area baseline, adjusted for condition and location. Asking €1,795,000 sits €1,414,346 (78.8%) above — overpriced versus fair value.
Asking €1,795,000 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 81/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,082,358 + condition +€30,419 + location +€31,840 = modelled fair value of €380,654 (€1,212/m²), a €1,414,346 (78.8%) gap versus the €1,795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 6ebb84 | Subject | €1,795,000 | €5,717 | — | 75 | 75 |
| Lagoa e Carvoeiro · 95705d | Active | €1,895,000 | €6,035 | 5.6% | 75 | 74 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 8.1% | — | 71 |
| Lagoa e Carvoeiro · 89366c | Active | €1,895,000 | €5,574 | 2.5% | 80 | 72 |
| Lagoa e Carvoeiro · 96c54c | Active | €740,000 | €4,774 | 16.5% | 85 | 73 |
| Median comp | €1,572,500 | €5,413 | 5.3% | 80 | 73 |
Long-term rental The property's current asking price of €1,795,000 presents a 78.8% gap compared to its fair value of €380,654, indicating it is significantly overpriced for long-term rental investment. With a gross yield of only 1.2%, this strategy would likely fail to meet investor return expectations. Short-term vacation rental With the property's valuation gap of 78.8% compared to fair value, it is clear that the €1,795,000 listing price is not aligned with the market for short-term vacation rentals. Additionally, the expected return on investment remains low at a gross yield of only 1.2%, suggesting this property would struggle to generate the desired revenue. Buy-and-hold Investing in this property at the asking price of €1,795,000 is inadvisable due to its significant 78.8% overpricing relative to its fair value of €380,654. The low gross yield of 1.2% further implies that a buy-and-hold strategy would likely lead to lackluster financial performance over time.
Economic Fluctuation Risk The economic stability score of 65/100 indicates potential volatility in the local economy, which could affect tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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