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 159 m², built in 1990, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The villa includes a spectacular rooftop terrace with panoramic sea views and direct access to the private pool from the south-facing bedrooms, enhancing indoor-outdoor living.
The valuation. The asking price of €945,000 is significantly above its fair value of €184,009, exceeding it by €760,991 or 80.5%. This property is clearly overpriced and does not represent a sound financial investment.
Fair value modelled at €184,009 from the area baseline, adjusted for condition and location. Asking €945,000 sits €760,991 (80.5%) above — overpriced versus fair value.
Asking €945,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €548,073 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 76 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €548,073 + condition +€7,950 + location +€14,833 = modelled fair value of €184,009 (€1,157/m²), a €760,991 (80.5%) gap versus the €945,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 483ae7 | Subject | €945,000 | €5,943 | — | 76 | 73 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 11.6% | — | 71 |
| Lagoa e Carvoeiro · 96c54c | Active | €740,000 | €4,774 | 19.7% | 85 | 73 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 21.7% | 76 | 77 |
| Lagoa e Carvoeiro · 95705d | Active | €1,895,000 | €6,035 | 1.5% | 75 | 74 |
| Median comp | €995,000 | €5,013 | 15.7% | 76 | 74 |
Short-term vacation rental The property’s high listing price of €945,000 significantly exceeds its fair value of €184,009, indicating it is overpriced for short-term vacation rentals. With a modest yield of 2% gross and a neighborhood rating of 73/100, this investment lacks the potential for attractive short-term returns. Long-term rental At €945,000, the property is overpriced compared to its fair value, which leads to concerns about the feasibility of achieving healthy long-term rental yields. Given the yield of only 2% gross and the property’s condition score of 78/100, investors may find better value elsewhere for long-term rental strategies. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unattractive because its listing price is 80.5% higher than the fair value of €184,009. While the location in central Algarve is desirable, the low yield of 2% gross and relative expense suggest limited long-term capital appreciation potential.
Tenant turnover risk With a tenant stability score of 70/100, there is a moderate risk of higher tenant turnover, potentially leading to increased vacancy rates and lower cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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