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.
4-bedroom, 4-bathroom house of 252 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a covered terrace with direct views over the 14-meter heated swimming pool, enhancing outdoor living and entertaining opportunities.
The valuation. The asking price of €1,990,000 sits significantly above the fair value of €1,217,901, representing an overvaluation of €772,099 or 63.4%. This indicates the property is overpriced and may deter potential buyers. Buy-to-flip angle. A buy-and-flip strategy may be challenging, given the current asking price, but with renovation focused on modernizing the space, there could be potential for a profitable resale in the high-demand tourist market. Buy-to-let angle. The estimated gross yield of 2.7%, translating to about €4,478 per month, suggests that while rental income potential exists, it may be limited by the overpriced nature of the property in a mixed neighborhood.
Fair value modelled at €1,217,901 from 6 comparable sales in the area. Asking €1,990,000 sits €772,099 (63.4%) above — overpriced versus fair value.
Asking €1,990,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,026,632 (€4,074/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €1,026,632, adjusted for condition and micro-location, gives a modelled fair value of €1,217,901 (€4,833/m²), a €772,099 (63.4%) gap versus the €1,990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · cc9aaf | Subject | €1,990,000 | €7,897 | — | 88 | 70 |
| Estômbar e Parchal · 93724d | Active | €1,299,000 | €4,811 | 39.1% | 78 | 72 |
| Estômbar e Parchal · a803ea | Active | €1,170,000 | €4,855 | 38.5% | 76 | 73 |
| Estômbar e Parchal · 9114d1 | Active | €1,050,000 | €5,072 | 35.8% | 70 | 70 |
| Lagoa e Carvoeiro · 6eb9d7 | Active | €995,000 | €3,699 | 53.2% | 80 | 72 |
| Median comp | €1,110,000 | €4,833 | 38.8% | 77 | 72 |
Short-term vacation rental The property's listing price of €1,990,000 represents a significant 63.4% premium over its fair value of €1,217,901, diminishing its appeal for the short-term vacation rental market despite the robust tourism demand in the area. With a gross yield of only 2.7%, the investment potential is further undermined, making this strategy less attractive. Buy-and-hold The 4-bed house, priced at €1,990,000, is overpriced compared to its fair value of €1,217,901, indicating a gap that is challenging for a buy-and-hold strategy to overcome. Given the low 2.7% gross yield and the mixed quality of schools in the neighbourhood, capital appreciation prospects appear limited. Value-add renovation Investing in this property for a value-add renovation strategy seems unwise, as the €1,990,000 listing is significantly above the fair value of €1,217,901, reflecting a 63.4% overvaluation. The existing condition rating of 86/100 may offer some upside potential, but the hefty price tag combined with the 2.7% yield creates a challenging investment scenario.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns affecting property value and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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