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 401 m², built in 2007, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a fully equipped outdoor kitchen adjacent to the saltwater pool, enhancing its appeal for entertaining and outdoor living in a private garden setting.
The valuation. The asking price of €2,990,000 is significantly above the fair value of €486,015, representing an overpriced position with a difference of €2,503,985 (83.7%). This property does not present a compelling financial opportunity. Buy-to-flip angle. Given its high-end condition and finishes, a buy-to-flip strategy could involve cosmetic improvements to attract buyers; however, the substantial mark-up from fair value presents intrinsic risk. Buy-to-let angle. With a gross yield of 0% and no estimated monthly rental income, a buy-to-let strategy seems unfavorable; investors should seek properties that provide solid cash flow potential.
Fair value modelled at €486,015 from the area baseline, adjusted for condition and location. Asking €2,990,000 sits €2,503,985 (83.7%) above — overpriced versus fair value.
Asking €2,990,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,382,247 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 90/100 (Condition 92 · Materials 89 · Room dimensions 90). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 75 · Amenities 75 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Lagoa e Carvoeiro, Lagoa, Faro
Area baseline €1,382,247 + condition +€50,125 + location +€29,276 = modelled fair value of €486,015 (€1,212/m²), a €2,503,985 (83.7%) gap versus the €2,990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 6c7a4c | Subject | €2,990,000 | €7,456 | — | 92 | 68 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 63.7% | 82 | 73 |
| rua Depósito de Água | Active | €2,300,000 | €10,599 | 42.1% | 82 | 74 |
| Lagoa e Carvoeiro · 96c4ef | Active | €1,250,000 | €5,252 | 29.6% | — | 71 |
| Lagoa e Carvoeiro · 483ae7 | Active | €945,000 | €5,943 | 20.3% | 76 | 73 |
| Median comp | €1,097,500 | €5,598 | 24.9% | 82 | 73 |
Short-term vacation rental The property is overpriced at €2,990,000 while the fair value is only €486,015, representing an excessive gap of 83.7%. With a gross yield of 0%, the investment offers no return potential for short-term vacation rental purposes, making it financially imprudent. Buy-and-hold At a listing price far above its fair value, the property does not present a sound investment opportunity for a buy-and-hold strategy, given the 83.7% markup against the fair value. Holding onto this property would not yield strong returns, as it currently offers no gross yield and is significantly overpriced compared to market norms. Family rental This property, while in good condition with a rating of 90/100, is not a viable candidate for a family rental investment due to its overpriced status at €2,990,000 versus a fair value of €486,015. The lack of return potential, combined with a high listing price, complicates its attractiveness as a rental home for families in the area.
Economic and Tenant Instability The property's economic and tenant stability scores are both at 60/100, indicating a moderate risk of fluctuating rental income and potential tenant turnover that could impact investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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