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.
2-bedroom, 1-bathroom apartment of 80 m², built in 1991, energy rating D. Located on rua do Barranco, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. The apartment offers potential for renovation with its efficient layout, providing an opportunity to modernize dated elements and increase overall value in a sought-after resort location.
The valuation. The asking price of €320,000 sits significantly above the fair value of €78,583, creating an overpriced scenario of €241,417 (75.4%). Buyers should approach with caution due to this high premium.
Fair value modelled at €78,583 from the area baseline, adjusted for condition and location. Asking €320,000 sits €241,417 (75.4%) above — overpriced versus fair value.
Asking €320,000 versus the rua do Barranco area baseline of €275,760 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 (Condition 68 · Materials 65 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 65 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua do Barranco
Area baseline €275,760 + condition -€10,000 + location +€7,463 = modelled fair value of €78,583 (€982/m²), a €241,417 (75.4%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Barranco | Subject | €320,000 | €4,000 | — | 68 | 73 |
| Lagoa e Carvoeiro · 65a726 | Active | €330,000 | €3,708 | 7.3% | 68 | 71 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 40.7% | 74 | 70 |
| Lagoa e Carvoeiro · 6d5455 | Active | €360,000 | €3,673 | 8.2% | 75 | 71 |
| Lagoa e Carvoeiro · 38c66b | Active | €475,000 | €3,862 | 3.5% | 72 | 78 |
| Median comp | €345,000 | €3,691 | 7.7% | 73 | 71 |
Short-term vacation rental The property is overpriced at €320,000 with a fair value of only €78,583, indicating a significant gap of 75.4%. Given the gross yield of 4.6% and the heavy dependence on tourism, potential returns may not justify the investment. Buy-and-hold This apartment's listing price is excessive compared to its fair value, suggesting a 75.4% premium that hampers long-term investment viability. While the neighborhood benefits from tourism, the elevated price reduces the attractiveness of a buy-and-hold strategy. Value-add renovation With a fair value of €78,583, the current price of €320,000 implies the apartment is 75.4% overpriced and presents challenges for any value-add renovation plans. The existing condition score of 67/100 may provide opportunities for improvement, but the high acquisition cost outweighs the potential gains.
Economic volatility risk The property faces potential economic volatility due to the economic stability score of 70/100, which may affect tenant demand and rental income 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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