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.
3-bedroom, 2-bathroom villa of 109 m², built in 1990, energy rating D. Located on rua do Clube Carvoeiro S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. The property features a converted basement with a self-contained one-bedroom apartment, offering excellent rental potential or ideal guest accommodation.
The valuation. The asking price of €695,000 sits €46,762 (7.2%) above the fair value of €648,238, indicating a fair valuation. This suggests that buyers may expect further negotiation to achieve a more favorable purchase price.
Fair value modelled at €648,238 from 5 comparable sales in the area. Asking €695,000 sits €46,762 (7.2%) above — overpriced versus fair value.
Asking €695,000 versus the rua do Clube Carvoeiro S / N area baseline of €624,305 (€5,728/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €624,305, adjusted for condition and micro-location, gives a modelled fair value of €648,238 (€5,947/m²), a €46,762 (7.2%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Clube Carvoeiro S / N | Subject | €695,000 | €6,376 | — | 75 | 72 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 6.7% | 75 | 70 |
| Estômbar e Parchal · 28b841 | Active | €795,000 | €4,162 | 34.7% | 75 | 71 |
| Lagoa e Carvoeiro · b4540b | Active | €1,075,000 | €6,073 | 4.7% | 75 | 71 |
| Estômbar e Parchal · 735450 | Active | €1,350,000 | €5,947 | 6.7% | 78 | 72 |
| Median comp | €1,212,500 | €5,947 | 6.7% | 75 | 71 |
Long-term rental The current listing price of €695,000 reflects a fair valuation compared to the calculated fair value of €648,238, indicating that this property may not yield strong returns for long-term rental investment, given the gross yield of only 2.6%. Additionally, the neighbourhood rating of 72/100 suggests a decent quality of tenant base, but may limit rental growth potential in a competitive market. Short-term vacation rental With the property priced at €695,000 and a fair value of €648,238, the potential return on investment through short-term vacation rentals might be constrained as the yield sits at a modest 2.6%. The attractive location near Algarve's beaches enhances its short-term rental appeal; however, the seasonal economy may pose challenges during off-peak periods. Buy-and-hold The property listed at €695,000 aligns closely with its fair value of €648,238, suggesting it lacks significant upside for a buy-and-hold strategy despite stable market conditions. Given the current gross yield of 2.6%, investing with the expectation of long-term appreciation may not deliver compelling results in this neighbourhood with a quality score of 72/100.
Economic Sensitivity With an economic stability score of 65/100, the property may be susceptible to economic downturns that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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