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 152 m², built in 1993, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Unique Feature: The property boasts a charming mural titled 'Under the Sun and the Sea' in the pool area, creating a distinctive focal point in the outdoor space. Additional Note: A rooftop terrace offers unobstructed views, enhancing the outdoor enjoyment.
The valuation. The asking price of €1,150,000 sits €215,867 or 23.1% above the fair value of €934,133, indicating the property is overpriced. This discrepancy may hinder profitable long-term investment returns.
Fair value modelled at €934,133 from 6 comparable sales in the area. Asking €1,150,000 sits €215,867 (23.1%) above — overpriced versus fair value.
Asking €1,150,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €861,735 (€5,669/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €861,735, adjusted for condition and micro-location, gives a modelled fair value of €934,133 (€6,146/m²), a €215,867 (23.1%) gap versus the €1,150,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 829027 | Subject | €1,150,000 | €7,566 | — | 70 | 60 |
| rua de Vale do Milho | Active | €1,275,000 | €6,472 | 14.5% | — | 73 |
| rua de Vale do Milho | Active | €1,399,000 | €6,218 | 17.8% | — | 71 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 21.4% | 75 | 70 |
| rua Areias dos Moinhos | Active | €1,265,000 | €6,487 | 14.3% | 78 | 71 |
| Median comp | €1,312,500 | €6,345 | 16.1% | 77 | 71 |
Short-term vacation rental High seasonal activity in the Algarve could support demand for short-term vacation rentals; however, the property is priced 23.1% above fair value, diminishing potential profitability. Additionally, with a gross yield of only 2.4%, this strategy may not provide adequate returns in a competitive market. Long-term rental While Lagoa boasts low crime rates, the property’s current listing price represents a 23.1% premium over fair value, making it less appealing for long-term rental investment. Given its gross yield of just 2.4%, the investment may struggle to deliver satisfactory rental income relative to the purchase price. Buy-and-hold The buy-and-hold strategy may seem appealing in a prime tourist location like Lagoa, but an overpricing of 23.1% against fair value suggests potential market corrections could hinder long-term appreciation. The current condition rating of 69/100 reflects that additional investment may be necessary to maintain property value in the face of market fluctuations.
Economic Dependency Risk: With an economic stability score of only 50/100, the property may be vulnerable to fluctuations in the local economy, potentially affecting tenant retention and rental income.
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