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, 2-bathroom house of 165 m², energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Property Highlight: This property features a multifunctional space on the first floor that can be customized for various uses, enhancing flexibility for modern living in a tranquil setting.
The valuation. The asking price of €690,000 sits €83,673 (13.8%) above the fair value of €606,327, indicating the property is overpriced. This discrepancy raises concerns for potential investors assessing true value versus asking price.
Fair value modelled at €606,327 from 6 comparable sales in the area. Asking €690,000 sits €83,673 (13.8%) above — overpriced versus fair value.
Asking €690,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €457,946 (€2,775/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 €457,946, adjusted for condition and micro-location, gives a modelled fair value of €606,327 (€3,675/m²), a €83,673 (13.8%) gap versus the €690,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 7cad05 | Subject | €690,000 | €4,182 | — | 80 | 74 |
| Lagoa e Carvoeiro · 57f9d8 | Active | €690,000 | €3,651 | 12.7% | 77 | 75 |
| Lagoa e Carvoeiro · 49b71c | Active | €130,000 | €1,083 | 74.1% | 80 | 60 |
| Porches · 8ee83f | Active | €540,000 | €3,699 | 11.6% | 80 | 71 |
| Porches · 225c4c | Active | €349,000 | €3,356 | 19.8% | 73 | 70 |
| Median comp | €444,500 | €3,504 | 16.2% | 79 | 71 |
Short-term vacation rental The current property is overpriced, with a listing price of €690,000 against a fair value of €606,327, reflecting a 13.8% gap. While the Algarve has high tourist activity, the gross yield of 3.1% suggests that returns may not justify the high entry cost for a short-term rental. Long-term rental Despite the presence of tourist demand in the Algarve, the property’s gross yield of 3.1% does not align with the asking price of €690,000, which is significantly above the fair value of €606,327. Investors could find better opportunities with more favorable yield potentials instead of this overpriced option. Buy-and-hold As the property is listed at €690,000, making it 13.8% above its fair value of €606,327, the buy-and-hold strategy appears less attractive here. The potential appreciation on this investment may not adequately compensate for the high purchase price, given its current yield of only 3.1%. Not ideal for: Student housing, Luxury market
Economic Vulnerability The combined economic stability score of 65/100 alongside a tenant stability score of 65/100 indicates a potential risk in maintaining consistent rental income due to possible fluctuations in local economic conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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