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 house of 131 m², built in 2000, energy rating A. Located on urbanização das Sesmarias, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features access to a resort-style setting with three interconnected ponds and lush Mediterranean gardens, enhancing its tranquil atmosphere and outdoor living experience.
The valuation. The asking price of €974,500 sits significantly above its fair value of €545,833, with a disparity of €428,667 (78.5%). This valuation indicates that the property is overpriced.
Fair value modelled at €545,833 from 5 comparable sales in the area. Asking €974,500 sits €428,667 (78.5%) above — overpriced versus fair value.
Asking €974,500 versus the urbanização das Sesmarias area baseline of €413,593 (€3,157/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €413,593, adjusted for condition and micro-location, gives a modelled fair value of €545,833 (€4,167/m²), a €428,667 (78.5%) gap versus the €974,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização das Sesmarias | Subject | €974,500 | €7,439 | — | 80 | 73 |
| Ferragudo · 25f5aa | Active | €850,000 | €3,025 | 59.3% | 75 | 73 |
| Ferragudo · bf283f | Active | €1,400,000 | €3,836 | 48.4% | 80 | 73 |
| rua de Lobito | Active | €1,390,000 | €5,792 | 22.1% | 85 | 71 |
| Ferragudo · 19084b | Active | €625,000 | €4,167 | 44.0% | 76 | 61 |
| Median comp | €1,120,000 | €4,002 | 46.2% | 78 | 72 |
Short-term vacation rental The property is overpriced, with a significant gap of 78.5% from its fair value of €545,833. At a gross yield of only 2.2%, it does not offer an attractive return for investors looking to capitalize on the tourist influx in the Algarve. Long-term rental Investing in this property for long-term rental is not advisable, given its high listing price of €974,500 compared to a fair value of €545,833, indicating a 78.5% overpricing. The gross yield of 2.2% fails to justify the investment amid a neighborhood offering a moderate tenant quality rating of 73/100. Buy-and-hold This buy-and-hold strategy is compromised by the property's current listing price, which is €974,500, far above the fair value of €545,833, representing a 78.5% overvaluation. The low gross yield of 2.2% suggests limited profitability potential, especially given the neighborhood's 73/100 rating for amenities that cater mainly to tourists rather than residents.
Economic downturn risk A score of 65/100 in economic stability indicates potential vulnerability to fluctuations in the market that could adversely affect rental income.
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