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, 0-bathroom apartment of 84 m² on the 1st floor, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This apartment features a spacious 23m² terrace with a built-in barbecue, perfect for outdoor dining while enjoying panoramic sea views.
The valuation. The asking price of €450,000 is significantly above the fair value of €336,627, resulting in an excess of €113,373, or 33.7%. This property is deemed overpriced according to current market assessments.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 2fce3e | Subject | €450,000 | €5,357 | — | — | 70 |
| Ferragudo · be91f0 | Active | €395,000 | €4,438 | 17.2% | 70 | 75 |
| rua do Barranco | Active | €320,000 | €4,000 | 25.3% | 68 | 73 |
| Lagoa e Carvoeiro · 65a726 | Active | €330,000 | €3,708 | 30.8% | 68 | 71 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 55.7% | 74 | 70 |
| Median comp | €325,000 | €3,854 | 28.1% | 69 | 72 |
Long-term rental Given the significant gap of 33.7% between the listing price of €450,000 and the fair value of €336,627, the property is overpriced, which diminishes its appeal for long-term rental. Furthermore, with a gross yield of 0%, the investment fails to provide a reasonable return in the current market environment. Short-term vacation rental Although the Algarve region is well-known for beach tourism, the property’s condition score of 0/100 indicates a critical need for renovations, making it a poor candidate for short-term vacation rental. This, combined with the high asking price and zero expected yield, suggests that the property is not a viable option in the short-term rental market. Buy-and-hold Investing in this property as a buy-and-hold strategy is unadvisable due to its overpriced nature at €450,000 versus the fair market value of €336,627, representing a 33.7% premium. The lack of yield and the property's condition further indicate that it would not generate sufficient passive income to justify such an investment over the long term.
Economic Downturn Risk The economic stability score of 65 suggests that there may be vulnerabilities in the local economy that could impact rental income and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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