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 143 m², built in 1987, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The villa boasts a rooftop terrace with stunning mountain views and a fully contained 4th bedroom/office with independent access, perfect for guests or remote work.
The valuation. The asking price of €975,000 is well above its fair value of €859,472, indicating it is overpriced by €115,528 (13.4%). This difference suggests caution when considering investment. Buy-to-flip angle. A buy-to-flip strategy could involve renovations to enhance the property’s appeal, aiming to resell at a price significantly higher than the purchase price, although current market conditions appear challenging. Buy-to-let angle. The estimated gross yield of 2.3% (~€1,869/month) indicates moderate rental income potential, making this a viable option for long-term rentals due to its proximity to tourist attractions.
Fair value modelled at €859,472 from 6 comparable sales in the area. Asking €975,000 sits €115,528 (13.4%) above — overpriced versus fair value.
Asking €975,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €731,667 (€5,117/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €731,667, adjusted for condition and micro-location, gives a modelled fair value of €859,472 (€6,010/m²), a €115,528 (13.4%) gap versus the €975,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 7ca85f | Subject | €975,000 | €6,818 | — | 80 | 63 |
| rua Areias dos Moinhos | Active | €1,265,000 | €6,487 | 4.9% | 78 | 71 |
| Lagoa e Carvoeiro · b4540b | Active | €1,075,000 | €6,073 | 10.9% | 75 | 71 |
| Lagoa e Carvoeiro · 4a4457 | Active | €995,000 | €8,156 | 19.6% | 78 | 68 |
| rua da Guine-Bissau | Active | €1,190,000 | €5,107 | 25.1% | 75 | 72 |
| Median comp | €1,132,500 | €6,280 | 7.9% | 77 | 71 |
Short-term vacation rental The property's listing price of €975,000 reflects a gap of 13.4% above its fair value of €859,472, indicating it may not yield sufficient returns for short-term rentals in the competitive coastal tourist market. With a gross yield of only 2.3%, investing in this property for vacation rentals is less appealing given the pricing dynamics. Long-term rental Despite being located in a coastal tourist area, the property's fair value indicates a significant premium at 13.4%, questioning its suitability for long-term rental investments. The low yield of 2.3% suggests that potential long-term rent returns may not justify the current listing price. Value-add renovation Although there is potential for value-add through renovations, the property is currently overpriced at €975,000, making it a risky investment in terms of capital expenditure versus expected return. With a condition rating of 83/100, significant improvements may be needed, complicating the financial viability due to the existing price gap of 13.4%. Not ideal for student housing The property's pricing and neighborhood rating of 63/100 indicate that it may not attract a stable demographic for student housing despite proximity to amenities in the coastal area. High costs compared to potential rental income further reinforce that this property is not appropriately positioned for student demand. Not ideal for luxury market The listing price of €975,000 does not align with the criteria of luxury market investments, especially given its condition score and neighborhood rating. The significant gap to fair value suggests that even with desirable features, the property does not justify its luxury appeal based on current market expectations.
Economic Vulnerability The property has an economic stability score of 55/100, indicating a moderate risk of economic downturns affecting rental income potential. Tenant Turnover Risk With a tenant stability score of 60/100, there is a significant possibility of tenant turnover, which may lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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