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.
1-bedroom, 1-bathroom house of 66 m², built in 1991, energy rating A. Located on urbanização dos Salicos, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a rooftop terrace with unobstructed views, ideal for creating a relaxing outdoor space, along with independent exterior access to the kitchen for enhanced functionality.
The valuation. The asking price of €319,000 is significantly above the fair value of €50,745, reflecting an overpriced status with a staggering €268,255 (84.1%) discrepancy. This indicates that the property does not represent a sound investment opportunity.
Fair value modelled at €50,745 from the area baseline, adjusted for condition and location. Asking €319,000 sits €268,255 (84.1%) above — overpriced versus fair value.
Asking €319,000 versus the urbanização dos Salicos area baseline of €227,502 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 54/100 (Condition 50 · Materials 60 · Room dimensions 55). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
urbanização dos Salicos
Area baseline €227,502 + condition -€22,069 + location +€5,889 = modelled fair value of €50,745 (€769/m²), a €268,255 (84.1%) gap versus the €319,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização dos Salicos | Subject | €319,000 | €4,833 | — | 50 | 72 |
| Lagoa e Carvoeiro · dc13cf | Active | €1,450,000 | €9,667 | 100.0% | — | 73 |
| Lagoa e Carvoeiro · 90d75b | Active | €740,000 | €8,315 | 72.0% | — | 73 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 3.7% | 76 | 77 |
| Lagoa e Carvoeiro · f35ec8 | Active | €570,000 | €4,071 | 15.8% | 80 | 74 |
| Median comp | €705,000 | €6,484 | 34.2% | 78 | 74 |
Short-term vacation rental The property in Lagoa is overpriced at €319,000, with a fair value of only €50,745, presenting a significant gap of 84.1%. Additionally, a gross yield of 3.1% is not attractive in the competitive short-term rental market likely influenced by its tourism economy. Buy-and-hold Investing in this 1-bed house for long-term appreciation appears imprudent due to its valuation being 84.1% above fair value, while the gross yield of 3.1% suggests limited cash flow potential. This significant price discrepancy makes it unlikely to yield satisfactory returns over time. Luxury market Positioning this property as a luxury offering is challenging given its current valuation of €319,000, which is excessively inflated when compared to its fair value of €50,745. The neighbourhood score of 72/100 indicates some appeal, yet it does not justify an overpriced status in the luxury segment.
Potential Economic Decline The economic stability score of 65/100 indicates that there may be potential fluctuations in local economic conditions that could impact long-term tenant retention 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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