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 house of 326 m², built in 2002, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property offers a rare investment opportunity with an additional 1,000 m² urban plot suitable for building a guesthouse, alongside a vast 7,600 m² plot with high appreciation potential.
The valuation. The asking price of €1,400,000 is significantly above the fair value of €368,107, indicating an overvalued property by €1,031,893 (73.7%). This substantial discrepancy suggests a lack of investment appeal at the current price.
Fair value modelled at €368,107 from the area baseline, adjusted for condition and location. Asking €1,400,000 sits €1,031,893 (73.7%) above — overpriced versus fair value.
Asking €1,400,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,123,722 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 71 · Materials 78 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,123,722 + condition +€7,131 + location +€30,412 = modelled fair value of €368,107 (€1,129/m²), a €1,031,893 (73.7%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 23f2ab | Subject | €1,400,000 | €4,294 | — | 71 | 73 |
| Porches · f362ae | Active | €1,750,000 | €5,973 | 39.1% | 73 | 81 |
| Lagoa e Carvoeiro · 49b8f5 | Active | €5,000,000 | €13,587 | 216.4% | 75 | 73 |
| autoestrada EM530-1, 54 | Active | €580,000 | €4,328 | 0.8% | 67 | 72 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 22.3% | — | 71 |
| Median comp | €1,500,000 | €5,613 | 30.7% | 73 | 73 |
Short-term vacation rental This property is overpriced with a listing price of €1,400,000 compared to a fair value of €368,107, indicating a significant gap of 73.7%. At a gross yield of only 1.9%, the return on investment does not align with typical expectations for short-term vacation rentals in tourist-heavy areas. Long-term rental With a fair value of €368,107, the current listing price suggests that this property is overpriced by 73.7%, compromising potential cash flow for long-term rental strategies. A gross yield of 1.9% further highlights the insufficient return potential that makes this property less appealing for long-term investment. Buy-and-hold Given the stark contrast between the listing price of €1,400,000 and the fair value of €368,107, this property is overpriced at a 73.7% gap, making it a questionable buy-and-hold investment. The low gross yield of 1.9% worsens the investment outlook, suggesting that long-term capital appreciation may not be achievable under these conditions.
Economic and Tenant Instability Risk The combined economic stability score of 70 and tenant stability score of 70 indicates potential fluctuations in rental income and occupancy levels, which could impact cash flow stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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