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.
5-bedroom, 5-bathroom villa of 350 m², energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa includes two independent entrances and a spacious garage, enhancing its functionality and convenience for multiple vehicles or guests.
The valuation. The asking price of €2,200,000 significantly exceeds the fair value of €429,660, indicating the property is overpriced by €1,770,340 (80.5%). This discrepancy suggests that potential investors should approach with caution.
Fair value modelled at €429,660 from the area baseline, adjusted for condition and location. Asking €2,200,000 sits €1,770,340 (80.5%) above — overpriced versus fair value.
Asking €2,200,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,206,450 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). 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 €1,206,450 + condition +€42,109 + location +€32,651 = modelled fair value of €429,660 (€1,228/m²), a €1,770,340 (80.5%) gap versus the €2,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · da4634 | Subject | €2,200,000 | €6,286 | — | 80 | 73 |
| Lagoa e Carvoeiro · 49b8f5 | Active | €5,000,000 | €13,587 | 116.2% | 75 | 73 |
| Lagoa e Carvoeiro · 956caf | Active | €1,495,000 | €2,142 | 65.9% | 85 | 73 |
| Estômbar e Parchal · 93724d | Active | €1,299,000 | €4,811 | 23.5% | 78 | 72 |
| Estômbar e Parchal · 9114d1 | Active | €1,050,000 | €5,072 | 19.3% | 70 | 70 |
| Median comp | €1,397,000 | €4,942 | 21.4% | 77 | 73 |
Short-term vacation rental Despite the Algarve's appeal for tourists, the villa's 80.5% gap from fair value suggests it is overpriced, limiting potential profits for short-term rentals. With a gross yield of just 1.6%, the expected return on investment is significantly diminished, making it a less attractive option for this strategy. Long-term rental The villa's high price point and resulting undervalued status present a challenge for long-term rental viability, especially with a yield of only 1.6%. Tenants may also be deterred by the high rental cost versus the basic amenities in the area, rendering it a less practical long-term investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is unwise given its significant price premium of 80.5% over fair value. The combination of low yield and adequate, but not compelling, neighborhood conditions raises concerns about future appreciation potential and rental viability.
Economic Vulnerability The property has an economic stability score of 65/100, indicating potential fluctuations in market demand that could affect 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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