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.
5-bedroom, 0-bathroom villa of 161 m², built in 2011, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes an extensive plot with a variety of fruit trees, enhancing its natural landscape, and has a dual living arrangement with an annex ideal for guests or rentals.
The valuation. The asking price of €1,300,000 is significantly above its fair value of €855,773, representing an overvaluation of €444,227, or 51.9%. This discrepancy suggests the property is overpriced relative to market expectations.
Fair value modelled at €855,773 from 6 comparable sales in the area. Asking €1,300,000 sits €444,227 (51.9%) above — overpriced versus fair value.
Asking €1,300,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €782,688 (€4,861/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €782,688, adjusted for condition and micro-location, gives a modelled fair value of €855,773 (€5,315/m²), a €444,227 (51.9%) gap versus the €1,300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 8318c0 | Subject | €1,300,000 | €8,075 | — | 65 | 66 |
| Lagoa e Carvoeiro · 5da106 | Active | €1,300,000 | €5,778 | 28.4% | — | 73 |
| rua Aldeia das Chaminés | Active | €795,000 | €4,184 | 48.2% | 65 | 65 |
| Lagoa e Carvoeiro · 6d5568 | Active | €1,290,000 | €3,057 | 62.1% | — | 64 |
| rua de Moçambique S / N | Active | €990,000 | €4,853 | 39.9% | 75 | 74 |
| Median comp | €1,140,000 | €4,519 | 44.0% | 70 | 69 |
Short-term vacation rental The property, listed at €1,300,000, is significantly overpriced with a gap of 51.9% compared to its fair value of €855,773. With a gross yield of only 1.5%, the financial performance of this investment is unlikely to be attractive for short-term rental purposes. Buy-and-hold Investing in this villa seems unwise given its substantial markup over fair value, which sits at 51.9%. The combination of a low yield and the economic reliance on seasonal tourism diminishes the potential for reliable long-term appreciation. Family rental Acquiring this property for family rental does not present a compelling case, as it is overpriced by 51.9% relative to its fair value. The moderate condition rating and the neighborhood's amenities suggest limited appeal to long-term family tenants at this price point.
Moderate Economic Risk The economic stability score of 60 indicates potential vulnerabilities in the local economy that could affect rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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