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, 2-bathroom apartment of 100 m², built in 2004, energy rating C. Located on rua de Moçambique S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts a private roof terrace equipped with a BBQ, offering panoramic sea views perfect for outdoor dining and relaxation while enjoying stunning sunsets.
The valuation. The asking price of €495,000 exceeds the fair value of €429,353 by €65,647 (15.3%). This property is currently overpriced.
Fair value modelled at €429,353 from 6 comparable sales in the area. Asking €495,000 sits €65,647 (15.3%) above — overpriced versus fair value.
Asking €495,000 versus the rua de Moçambique S / N area baseline of €352,177 (€3,522/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €352,177, adjusted for condition and micro-location, gives a modelled fair value of €429,353 (€4,294/m²), a €65,647 (15.3%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Moçambique S / N | Subject | €495,000 | €4,950 | — | 75 | 72 |
| Estômbar e Parchal · 225adf | Active | €395,000 | €2,782 | 43.8% | 75 | 73 |
| Lagoa e Carvoeiro · 1e6002 | Active | €395,000 | €4,877 | 1.5% | 76 | 70 |
| Lagoa e Carvoeiro · 3893e8 | Active | €430,000 | €4,725 | 4.5% | 74 | 71 |
| Lagoa e Carvoeiro · 38c66b | Active | €475,000 | €3,862 | 22.0% | 72 | 78 |
| Median comp | €412,500 | €4,294 | 13.3% | 75 | 72 |
Short-term vacation rental The property’s current listing price of €495,000 exceeds the fair value of €429,353 by 15.3%, making it a less attractive option for short-term rentals despite the Algarve’s tourism appeal. With a gross yield of 0%, the investment lacks immediate financial incentives in a market that thrives on strong rental returns. Buy-and-hold Given that the property is priced above fair market value, buying and holding this apartment comes with increased risk as it may not appreciate sufficiently to offset initial overpayment. The 0% yield and average condition create further concerns for long-term investors looking for productive asset management. Long-term rental The gap of 15.3% from fair value at €495,000 suggests that this property may not attract long-term tenants who are often searching for better value in a competitive market. Additionally, the property is ill-suited for a long-term rental strategy due to the zero yield and overall property condition. Not ideal for: This property is not a suitable option for student housing due to the costs exceeding fair value and the lack of yield. Furthermore, its characteristics do not align with the requirements of industrial leasing or the luxury market, given the price point and condition.
Economic and Tenant Stability Risk With both economic stability and tenant stability scores at 65/100, there is a heightened risk of fluctuating rental income and potential vacancy, affecting the property's cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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