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.
4-bedroom, 4-bathroom house of 456 m², built in 1993, energy rating C. Located on estrada do Farol S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts a private heated pool and well-maintained gardens, complemented by a spacious layout that facilitates indoor-outdoor living with distant sea views.
The valuation. The asking price of €1,495,000 exceeds the fair value of €1,291,525 by €203,475 (15.8%). This property is overpriced and does not present a compelling investment opportunity based on its current listing. Buy-to-flip angle. The property could be targeted for a quick resale strategy after minor cosmetic updates, capitalizing on its high-end finishes and desirable coastal location to attract buyers seeking luxury homes in the Algarve. Buy-to-let angle. With a gross yield of 0%, potential rental income would rely on short-term vacation rentals, leveraging the area's seasonal demand and the property's upscale amenities to generate revenue during peak tourist months.
Fair value modelled at €1,291,525 from 6 comparable sales in the area. Asking €1,495,000 sits €203,475 (15.8%) above — overpriced versus fair value.
Asking €1,495,000 versus the estrada do Farol S / N area baseline of €840,545 (€1,843/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €840,545, adjusted for condition and micro-location, gives a modelled fair value of €1,291,525 (€2,832/m²), a €203,475 (15.8%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Farol S / N | Subject | €1,495,000 | €3,279 | — | 85 | 69 |
| Lagoa e Carvoeiro · ee880a | Active | €580,000 | €2,762 | 15.8% | 75 | 69 |
| Lagoa e Carvoeiro · 828f9c | Active | €580,000 | €2,762 | 15.8% | 72 | 70 |
| Lagoa e Carvoeiro · cbc062 | Active | €630,000 | €2,800 | 14.6% | 76 | 73 |
| jardim & Sauna | Active | €998,000 | €4,073 | 24.2% | 82 | 67 |
| Median comp | €605,000 | €2,781 | 15.2% | 76 | 70 |
Short-term vacation rental The property is overpriced by 15.8%, which limits its potential as a short-term vacation rental, especially given the seasonal demand fluctuations in the Algarve. With a gross yield of 0% and a neighbourhood rating of 69/100, the financial returns may not justify the premium asking price during off-peak seasons. Buy-and-hold Considering the property is overpriced at €1,495,000, the buy-and-hold strategy is less attractive due to the lack of immediate financial benefits, as evidenced by the 0% gross yield. Additionally, the fair value of €1,291,525 suggests that investors may face challenges in achieving positive cash flow in the long term. Value-add renovation With the property deemed overpriced by 15.8%, the value-add renovation strategy could be risky as any investment in upgrades may not yield proportional increases in value. The excellent condition rating of 88/100 also implies that significant renovations are less likely to drastically enhance appeal in a neighbourhood that is reasonably rated at 69/100.
[Economic Vulnerability] With an economic stability score of 55/100, there is a considerable risk due to potentially unstable market conditions that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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