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, 3-bathroom villa of 162 m², built in 2015, energy rating B. Located on rua João Paulo II S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The villa's outdoor area includes a barbecue and pizza oven, complemented by a heated saltwater pool with efficient heating and multi-color lighting for entertaining. Condition Notes: Overall, the property exhibits a modern design with high-quality finishes and well-maintained areas, particularly in living spaces and outdoor features, with minor signs of wear and consistent maintenance.
The valuation. The asking price of €1,295,000 exceeds the fair value of €1,083,969 by €211,031, or 19.5%. This indicates that the property is overpriced. Buy-to-flip angle. A buy-to-flip strategy may not yield high returns, given the substantial premium over fair value; potential buyers would likely need significant renovations to justify the investment. Buy-to-let angle. With an estimated gross yield of 1.8% (~€1,943/month), the rental income strategy seems limited, primarily beneficial for long-term durability rather than high cash flow.
Fair value modelled at €1,083,969 from 6 comparable sales in the area. Asking €1,295,000 sits €211,031 (19.5%) above — overpriced versus fair value.
Asking €1,295,000 versus the rua João Paulo II S / N area baseline of €938,604 (€5,794/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €938,604, adjusted for condition and micro-location, gives a modelled fair value of €1,083,969 (€6,691/m²), a €211,031 (19.5%) gap versus the €1,295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua João Paulo II S / N | Subject | €1,295,000 | €7,994 | — | 78 | 67 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 41.8% | 76 | 77 |
| Lagoa e Carvoeiro · f35ec8 | Active | €570,000 | €4,071 | 49.1% | 80 | 74 |
| Lagoa e Carvoeiro · 483ae7 | Active | €945,000 | €5,943 | 25.7% | 76 | 73 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 6.9% | 80 | 73 |
| Median comp | €807,500 | €5,298 | 33.7% | 78 | 74 |
Short-term vacation rental The villa's appeal as a short-term vacation rental in festive Algarve is offset by its high listing price, which is 19.5% above fair value and yields only 1.8%. With growing competition in the vacation rental market, the overpriced nature of this property diminishes its investment attractiveness. Long-term rental Although the location benefits from tourist traffic, the villa's price tags it as overpriced by 19.5% compared to fair value, with a modest yield of 1.8%. A long-term rental strategy may be hindered by the elevated costs against the backdrop of the neighborhood rating of 67/100. Buy-and-hold As an investment for buy-and-hold, this villa is considered overpriced, listed at €1,295,000 versus a fair value of €1,083,969, indicating a gap of 19.5%. Despite its attractive coastal location, the financial metrics suggest that long-term appreciation may not justify the entry price. Not ideal for The property is not suitable for student housing due to its pricing and location dynamics. Additionally, it is ill-suited for industrial use or high-density urban projects given the villa's residential nature and market trends.
Market Vulnerability The economic stability score of 65/100 indicates potential vulnerability to market fluctuations that could impact rental income and property values negatively.
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