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 house of 217 m², energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Property Features: This villa boasts a rooftop terrace with panoramic sea views and features 12 solar panels for energy sustainability and efficiency. Area: Lagoa e Carvoeiro, Lagoa.
The valuation. The asking price of €1,990,000 sits significantly above fair value of €1,129,153, with a disparity of €860,847 (76.2%). Verdict: overpriced.
Fair value modelled at €1,129,153 from 6 comparable sales in the area. Asking €1,990,000 sits €860,847 (76.2%) above — overpriced versus fair value.
Asking €1,990,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €878,017 (€4,046/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 90/100 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 €878,017, adjusted for condition and micro-location, gives a modelled fair value of €1,129,153 (€5,203/m²), a €860,847 (76.2%) gap versus the €1,990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 6530a1 | Subject | €1,990,000 | €9,171 | — | 90 | 72 |
| Estômbar e Parchal · 6a91bb | Active | €1,799,995 | €6,102 | 33.5% | 85 | 72 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 70.4% | 82 | 73 |
| rua Depósito de Água | Active | €2,300,000 | €10,599 | 15.6% | 82 | 74 |
| rua da Palma S / N | Active | €3,499,000 | €9,306 | 1.5% | 75 | 64 |
| Median comp | €2,049,998 | €7,704 | 16.0% | 82 | 73 |
Short-term vacation rental The property, priced at €1,990,000, presents a notable gap of 76.2% versus the fair value of €1,129,153, indicating it is indeed overpriced for a short-term rental opportunity. Though the 2.4% gross yield is appealing, the steep price diminishes the overall investment viability given the competitive vacation rental market in the Algarve. Long-term rental With a valuation gap of 76.2% compared to the fair value, this property at €1,990,000 is overpriced, which poses challenges in achieving sustainable long-term rental returns. The gross yield of 2.4% further confirms that this investment lacks attractive financial metrics for a long-term rental strategy in this region. Buy-and-hold While the property has good condition ratings at 90/100 and is located in a decent neighborhood, its listing price of €1,990,000 does not justify a buy-and-hold strategy given the 76.2% overpricing relative to its fair value. Consequently, the investment's ability to appreciate in line with market trends in the Algarve is hindered, making it a suboptimal choice for long-term growth. Not ideal for: Student housing, Value-add renovation, Luxury market The property is overpriced at €1,990,000, and its characteristics do not align with the demands of student housing, nor does it present any value-add renovation opportunities that would justify its valuation. Additionally, entering the luxury market is ill-advised given the property’s inflated pricing and lack of distinguishing features that would attract high-end buyers.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of economic fluctuations that could impact property value and tenant demand negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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