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.
3-bedroom, 4-bathroom house of 231 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a charming interior courtyard that enhances natural light throughout the home, while the expansive first-floor terrace offers panoramic views of the Serra de Monchique.
The valuation. The asking price of €1,395,000 is significantly above the fair value of €1,112,853, representing an overpricing of €282,147 (25.4%). This discrepancy suggests potential investors may want to approach with caution.
Fair value modelled at €1,112,853 from 6 comparable sales in the area. Asking €1,395,000 sits €282,147 (25.4%) above — overpriced versus fair value.
Asking €1,395,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €881,032 (€3,814/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 €881,032, adjusted for condition and micro-location, gives a modelled fair value of €1,112,853 (€4,818/m²), a €282,147 (25.4%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · cc9a1d | Subject | €1,395,000 | €6,039 | — | 80 | 78 |
| Lagoa e Carvoeiro · b32753 | Active | €400,000 | €4,444 | 26.4% | 74 | 73 |
| Lagoa e Carvoeiro · 23f2ab | Active | €1,400,000 | €4,294 | 28.9% | 71 | 73 |
| Lagoa e Carvoeiro · 1f3405 | Active | €990,000 | €4,829 | 20.0% | 75 | 79 |
| Lagoa e Carvoeiro · 43908d | Active | €2,950,000 | €5,684 | 5.9% | 85 | 75 |
| Median comp | €1,195,000 | €4,637 | 23.2% | 75 | 74 |
Short-term vacation rental This property is overpriced by 25.4%, significantly limiting its potential as a short-term vacation rental in a high-tourism area. With a low yield of 2%, the investment fails to provide a compelling financial return compared to alternatives in the market. Buy-and-hold Given its 25.4% markup over fair value, this property does not offer a solid buy-and-hold investment opportunity in a seasonal tourism-driven economy. The expected returns do not outweigh the initial investment costs, given the low gross yield of 2%. Family rental The property’s pricing is unsustainable at €1,395,000 against a fair value of €1,112,853, making it a poor choice for family rentals. The limited yield of 2% further indicates that prospective tenants may not be able to afford this premium pricing. Not ideal for Student housing This property is not suited for student housing, as its overpriced nature at 25.4% above value suggests limited flexibility in pricing strategies. Additionally, its high listing price likely exceeds the budget for most students, limiting tenant pool access. Not ideal for Luxury market Priced at €1,395,000, the property’s current valuation is excessive, thus unattractive for the luxury market segment. With a fair value of €1,112,853, buyers would seek more competitive luxury offerings that provide better value for money.
Market Vulnerability There is a risk of economic downturn impacting tenant viability, given the economic and tenant stability scores both at 75/100, indicating potential weakness in maintaining occupancy and rental income during adverse conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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