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.
2-bedroom, 1-bathroom apartment of 85 m² on the 3rd floor, energy rating E. Located on estrada do Farol, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features high-quality appliances in the kitchen and a bright, spacious living area with sizable windows, enhancing its stylish, modern aesthetic.
The valuation. The asking price of €375,000 is significantly above the fair value of €239,545, exceeding it by €135,455 or 56.5%. This reflects an overpriced property in the current market context. Buy-to-flip angle. A buy-to-flip strategy would focus on renovating the property quickly to enhance its appeal, although the current pricing may limit profitability in a competitive local market. Buy-to-let angle. With an estimated rental income of €1,125/month, the gross yield stands at 3.6%, making it a feasible long-term rental option despite the high asking price, capitalizing on the nearby tourist demand.
Fair value modelled at €239,545 from 6 comparable sales in the area. Asking €375,000 sits €135,455 (56.5%) above — overpriced versus fair value.
Asking €375,000 versus the estrada do Farol area baseline of €209,571 (€2,466/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €209,571, adjusted for condition and micro-location, gives a modelled fair value of €239,545 (€2,818/m²), a €135,455 (56.5%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Farol | Subject | €375,000 | €4,412 | — | 80 | 72 |
| rua Doutor Fonseca de Almeida, 7 | Active | €279,000 | €2,818 | 36.1% | 76 | 73 |
| Lagoa e Carvoeiro · 133b61 | Active | €380,000 | €3,725 | 15.6% | 72 | 63 |
| rua Doutor Fonseca de Almeida | Active | €279,000 | €2,818 | 36.1% | 88 | 74 |
| rua Doutor Fonseca de Almeida, 24 | Active | €279,000 | €2,818 | 36.1% | 80 | 74 |
| Median comp | €279,000 | €2,818 | 36.1% | 78 | 74 |
Short-term vacation rental This 2-bed apartment in Lagoa is overpriced at €375,000, significantly exceeding the fair value of €239,545, which creates a 56.5% gap. With a gross yield of just 3.6%, the financials do not align with the high listing price, making it a less attractive option for vacation rentals. Long-term rental At a listing price of €375,000, this property is overpriced compared to its fair value of €239,545, resulting in a 56.5% discrepancy. The relatively low gross yield of 3.6% further indicates that long-term rental potential is diminished by the inflated purchase price. Buy-and-hold Although the property may seem appealing for a buy-and-hold strategy, its pricing at €375,000 is notably above the fair valuation of €239,545, creating a 56.5% gap. Given the 3.6% gross yield, the current investment does not justify the long-term holding potential, making it an unfavorable choice in the current market.
Economic Vulnerability A score of 65/100 in economic stability indicates a moderate risk, suggesting potential fluctuations in economic conditions that could impact rental income and property value. Tenant Turnover Risk With a tenant stability score of 75/100, there may be some tenant turnover, leading to potential vacancy periods and loss of 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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