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, 5-bathroom house of 217 m², built in 1998, energy rating B. Located on rua Depósito de Água, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a meticulously preserved traditional Algarve exterior combined with state-of-the-art sustainable technologies, including solar panels and underfloor heating, enhancing both character and efficiency.
The valuation. The asking price of €2,300,000 sits significantly above the fair value of €268,287, representing an overpricing of €2,031,713 (88.3%). This property is clearly overpriced in the current market.
Fair value modelled at €268,287 from the area baseline, adjusted for condition and location. Asking €2,300,000 sits €2,031,713 (88.3%) above — overpriced versus fair value.
Asking €2,300,000 versus the rua Depósito de Água area baseline of €747,999 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 82 · Materials 88 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Depósito de Água
Area baseline €747,999 + condition +€27,125 + location +€21,124 = modelled fair value of €268,287 (€1,236/m²), a €2,031,713 (88.3%) gap versus the €2,300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Depósito de Água | Subject | €2,300,000 | €10,599 | — | 82 | 74 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 74.4% | 82 | 73 |
| Lagoa e Carvoeiro · 65a5ae | Active | €1,100,000 | €4,000 | 62.3% | 80 | 73 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 50.4% | — | 71 |
| rua do Pestana Golf Resort | Active | €2,180,000 | €6,158 | 41.9% | 84 | 73 |
| Median comp | €1,175,000 | €4,626 | 56.4% | 82 | 73 |
Short-term vacation rental The 4-bed house in Lagoa e Carvoeiro is priced at €2,300,000, significantly exceeding the fair value of €268,287, resulting in an 88.3% gap that makes it overpriced for this strategy. With a low yield of 2.1% and a neighborhood score of 74/100, the investment is unlikely to deliver the typical returns expected from short-term rentals in the Algarve. Buy-and-hold At €2,300,000, the property is grossly overpriced compared to its fair value of €268,287, leading to a substantial gap of 88.3%. The current yield of 2.1% does not support a buy-and-hold investment in an asset that is priced far beyond its expected return potential. Family rental With a listing price of €2,300,000 and a fair value of just €268,287, the property is glaringly overpriced, presenting an 88.3% discrepancy. Given the minimal gross yield of 2.1%, this house is not a viable option for family rental investments in the current market context.
Economic Sensitivity The moderate economic stability score of 65/100 suggests vulnerability to market fluctuations that could impact rental income.
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