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, 6-bathroom house of 392 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa features high-end kitchen appliances, including a wine cellar and an espresso machine, alongside a spacious covered outdoor area with folding glass doors enhancing indoor-outdoor living.
The valuation. The asking price of €2,180,000 is significantly above the fair value of €1,937,181, with a difference of €242,819 (12.5%). This property is considered overpriced.
Fair value modelled at €1,937,181 from 6 comparable sales in the area. Asking €2,180,000 sits €242,819 (12.5%) above — overpriced versus fair value.
Asking €2,180,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,563,046 (€3,987/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 €1,563,046, adjusted for condition and micro-location, gives a modelled fair value of €1,937,181 (€4,942/m²), a €242,819 (12.5%) gap versus the €2,180,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · cc9a3d | Subject | €2,180,000 | €5,561 | — | 80 | 74 |
| Lagoa e Carvoeiro · da4634 | Active | €2,200,000 | €6,286 | 13.0% | 80 | 73 |
| Lagoa e Carvoeiro · 956caf | Active | €1,495,000 | €2,142 | 61.5% | 85 | 73 |
| Estômbar e Parchal · 9114d1 | Active | €1,050,000 | €5,072 | 8.8% | 70 | 70 |
| urbanização das Sesmarias, 127 | Active | €1,090,000 | €4,739 | 14.8% | 82 | 74 |
| Median comp | €1,292,500 | €4,906 | 11.8% | 81 | 73 |
Short-term vacation rental The property’s 1.6% gross yield indicates that it is overpriced for short-term vacation rental investment, where higher returns are typically expected. With a fair value of €1,937,181, the gap of 12.5% represents a significant risk for investors seeking profitable vacation rental opportunities in the vibrant tourism-focused Lagoa e Carvoeiro area. Buy-and-hold The 12.5% gap from fair value suggests that investors might not experience optimal returns through a buy-and-hold strategy, as the property’s asking price is above its fair valuation. The low yield of 1.6% does not align well with long-term investment goals in a neighborhood affected by the tourist-driven economy. Family rental While family rental markets can benefit from the proximity to amenities and the Algarve coast, the property’s pricing at €2,180,000 is above its fair value, indicating it may not be a wise investment for long-term family rentals. With a yield of just 1.6%, incorporating this property into a family rental strategy might not provide sufficient returns to justify the cost within the local housing market.
Economic Vulnerability The economic stability score of 65/100 suggests a moderate risk of economic downturn impacting 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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