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.
1-bedroom, 1-bathroom apartment of 54 m² on the 2nd floor, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This apartment features two generous balconies, offering outdoor retreat space amidst the vibrant atmosphere of Lagoa, ideal for enjoying the sunny Algarve climate.
The valuation. The asking price of €288,000 is significantly above the fair value of €204,381, representing a discrepancy of €83,619 (40.9%). This property is overpriced in the current market.
Fair value modelled at €204,381 from 6 comparable sales in the area. Asking €288,000 sits €83,619 (40.9%) above — overpriced versus fair value.
Asking €288,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €187,165 (€3,466/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 is below the parish average, reducing 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 €187,165, adjusted for condition and micro-location, gives a modelled fair value of €204,381 (€3,785/m²), a €83,619 (40.9%) gap versus the €288,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 875000 | Subject | €288,000 | €5,333 | — | 65 | 71 |
| rua do Barranco | Active | €320,000 | €4,000 | 25.0% | 68 | 73 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 55.5% | 74 | 70 |
| Lagoa e Carvoeiro · 65a726 | Active | €330,000 | €3,708 | 30.5% | 68 | 71 |
| via Spy Manor Productions | Active | €130,000 | €5,652 | 6.0% | 80 | 74 |
| Median comp | €297,500 | €3,854 | 27.7% | 71 | 72 |
Short-term vacation rental Given the property’s 40.9% gap between listing price and fair value, it is not well-positioned for the short-term vacation rental market, particularly with a gross yield of only 3.2%. Additionally, the seasonal demand in the Lagoa and Carvoeiro area suggests that any investment would struggle to match the pricing expectations. Long-term rental With a neighborhood rating of 71/100, the property holds potential in the long-term rental market; however, its overpriced value at €288,000 limits the financial viability as a rental investment. The modest gross yield of 3.2% further underscores the inadequacy of return relative to the inflated purchase price, raising concerns for landlords. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable, especially since it is overpriced by 40.9% compared to its fair value. The potential for long-term appreciation in a tourism-driven region may exist, but the immediate return characteristics do not justify the high acquisition cost. Not ideal for: Student housing, Luxury market, Value-add renovation
Potential for tenant turnover With a tenant stability score of 72/100, there is a moderate risk of turnover, impacting cash flow and requiring potential re-leasing efforts.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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