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.
6-bedroom, 7-bathroom house of 344 m², energy rating D. Located on estrada do Algar Seco, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa's prime location on Estrada do Algar Seco offers breathtaking panoramic ocean views, while the generous outdoor garden and terrace enhance the Algarve lifestyle experience.
The valuation. The asking price of €2,500,000 is significantly above the fair value of €1,515,767, resulting in an overpriced valuation by €984,233 (64.9%). This indicates that potential investors should approach this listing with caution.
Fair value modelled at €1,515,767 from 6 comparable sales in the area. Asking €2,500,000 sits €984,233 (64.9%) above — overpriced versus fair value.
Asking €2,500,000 versus the estrada do Algar Seco area baseline of €1,264,974 (€3,677/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €1,264,974, adjusted for condition and micro-location, gives a modelled fair value of €1,515,767 (€4,406/m²), a €984,233 (64.9%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Algar Seco | Subject | €2,500,000 | €7,267 | — | 72 | 75 |
| urbanização das Sesmarias, 127 | Active | €1,090,000 | €4,739 | 34.8% | 82 | 74 |
| via Spy Manor Productions | Active | €2,750,000 | €4,791 | 34.1% | 84 | 71 |
| jardim & Sauna | Active | €998,000 | €4,073 | 43.9% | 82 | 67 |
| estrada da Faria | Active | €1,550,000 | €3,377 | 53.5% | 80 | 72 |
| Median comp | €1,320,000 | €4,406 | 39.4% | 82 | 72 |
Short-term vacation rental The property in Lagoa e Carvoeiro is overpriced, with a gap of 64.9% compared to its fair value of €1,515,767. Although the Algarve is a prime tourist region, the 1.5% gross yield does not justify the current asking price. Buy-and-hold Investing in this property as a buy-and-hold strategy seems unwise, given its significant overpricing of 64.9% against fair value. With a condition rating of 76/100, there are better opportunities in the market that would offer more stable returns. Luxury market Targeting the luxury market with this Lagoa property is flawed since it is overpriced at €2,500,000, significantly above its fair value. The local economy, reliant on tourism and the expat community, struggles to support such a high valuation, reducing the attractiveness of this investment option.
Economic Vulnerability The economic stability score of 65/100 indicates that the area may experience fluctuations that could affect occupancy rates and rental income reliability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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