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, 3-bathroom villa of 90 m², built in 1992, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa boasts a private terrace with stunning sea views, enhancing its appeal for outdoor relaxation and entertaining. Location Benefits: Nestled within Rocha Brava Village Resort, known for its landscaped gardens and tranquil atmosphere.
The valuation. The asking price of €400,000 sits significantly above its fair value of €290,477, creating an excessive premium of €109,523 (37.7%). This property is overpriced given market conditions and should be approached with caution.
Fair value modelled at €290,477 from 6 comparable sales in the area. Asking €400,000 sits €109,523 (37.7%) above — overpriced versus fair value.
Asking €400,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €271,129 (€3,013/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €271,129, adjusted for condition and micro-location, gives a modelled fair value of €290,477 (€3,228/m²), a €109,523 (37.7%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · b32753 | Subject | €400,000 | €4,444 | — | 74 | 73 |
| Lagoa e Carvoeiro · 99f399 | Active | €430,000 | €2,756 | 38.0% | 72 | 74 |
| rua da Igreja, 6 | Active | €425,000 | €5,743 | 29.2% | 84 | 72 |
| Lagoa e Carvoeiro · 6eb9d7 | Active | €995,000 | €3,699 | 16.8% | 80 | 72 |
| Porches · 8ee83f | Active | €540,000 | €3,699 | 16.8% | 80 | 71 |
| Median comp | €485,000 | €3,699 | 16.8% | 80 | 72 |
Short-term vacation rental The villa in Lagoa e Carvoeiro presents a potential investment opportunity in the lucrative short-term vacation rental market, particularly given its location in the tourist-centric Algarve region. However, with a price of €400,000 exceeding the fair value by 37.7%, it may struggle to yield the desired returns amidst competitive offerings. Buy-and-hold Investing in this property for long-term hold poses significant risks due to its considerable price elevation compared to its fair value. The 3.6% gross yield suggests that it may not generate sufficient income to offset the initial investment cost, especially since the property is overpriced by nearly €110,000. Value-add renovation While undertaking a value-add renovation strategy could enhance property value and appeal, the significant markup from fair value raises concerns over potential returns. With current conditions scoring 77/100, any improvements would need to address the high acquisition cost to justify further investment in renovations, making this a challenging endeavor.
Potential tenant turnover risk The economic stability score of 65 implies moderate market volatility, which may lead to higher tenant turnover and impact the overall rental income stability for the property.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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