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, 4-bathroom villa of 376 m², built in 1998, energy rating B. Located on rua da Palma S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. The villa features a unique indoor pool adjacent to a private sauna, seamlessly connecting to the outdoor terrace, providing an exquisite setting for relaxation and entertainment with breathtaking sea views.
The valuation. The asking price of €3,499,000 is significantly above the fair value of €1,561,389, making it overpriced by €1,937,611 (124.1%). This valuation raises concerns regarding the potential return on investment. Buy-to-flip angle. A buy-to-flip strategy focusing on cosmetic upgrades and marketing the villa as a luxury vacation home could appeal to high-end buyers in the desirable Lagoa area. However, the current price may limit profit margins. Buy-to-let angle. A buy-to-let approach could provide an estimated gross yield of 1.1%, with expected rental income around €3,207 per month. While steady, this yield may not justify the investment given the high purchase price.
Fair value modelled at €1,561,389 from 6 comparable sales in the area. Asking €3,499,000 sits €1,937,611 (124.1%) above — overpriced versus fair value.
Asking €3,499,000 versus the rua da Palma S / N area baseline of €1,469,934 (€3,909/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €1,469,934, adjusted for condition and micro-location, gives a modelled fair value of €1,561,389 (€4,153/m²), a €1,937,611 (124.1%) gap versus the €3,499,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Palma S / N | Subject | €3,499,000 | €9,306 | — | 75 | 64 |
| Lagoa e Carvoeiro · d7a496 | Active | €1,636,000 | €4,305 | 53.7% | 75 | 74 |
| rua de Moçambique S / N | Active | €1,580,000 | €3,192 | 65.7% | 79 | 73 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 70.9% | 82 | 73 |
| Estômbar e Parchal · 6a91bb | Active | €1,799,995 | €6,102 | 34.4% | 85 | 72 |
| Median comp | €1,608,000 | €3,749 | 59.7% | 81 | 73 |
Short-term vacation rental This property, with a gross yield of just 1.1%, indicates that it is not positioned competitively in the short-term vacation rental market. The significant gap of 124.1% from its fair value suggests that it may not attract the expected rental income despite its location in a tourism-driven area. Long-term rental The 80/100 condition rating indicates that while the villa is in good shape, the 1.1% yield highlights a challenging investment scenario for long-term rentals. Given the high listing price relative to its fair market value, potential returns may not justify the costs involved. Buy-and-hold With a notable gap of 124.1% above its fair value, this villa presents a high entry cost that could jeopardize long-term capital appreciation. The current yield of 1.1% fails to create an attractive opportunity for investors looking to hold and benefit from property value growth over time.
Economic Vulnerability The economic stability score of 60 indicates potential vulnerability to economic downturns, which may affect tenant retention and 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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