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 199 m², built in 2008, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property boasts a spacious upper floor that maximizes distant sea views, complemented by large south-facing terraces ideal for outdoor entertaining. Additional Benefits: Low-maintenance with condominium-managed common areas enhances peace of mind.
The valuation. The asking price of €699,000 is considerably above the fair value of €563,626, indicating the property is overpriced by €135,374 (24.0%). Potential investors should exercise caution when evaluating this listing.
Fair value modelled at €563,626 from 6 comparable sales in the area. Asking €699,000 sits €135,374 (24.0%) above — overpriced versus fair value.
Asking €699,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €380,202 (€1,911/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €380,202, adjusted for condition and micro-location, gives a modelled fair value of €563,626 (€2,832/m²), a €135,374 (24.0%) gap versus the €699,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · c17977 | Subject | €699,000 | €3,513 | — | 80 | 68 |
| estrada do Farol S / N | Active | €1,495,000 | €3,279 | 6.7% | 85 | 69 |
| Lagoa e Carvoeiro · ee880a | Active | €580,000 | €2,762 | 21.4% | 75 | 69 |
| Lagoa e Carvoeiro · 828f9c | Active | €580,000 | €2,762 | 21.4% | 72 | 70 |
| rua Depósito de Água | Active | €550,000 | €2,865 | 18.4% | 74 | 66 |
| Median comp | €580,000 | €2,814 | 19.9% | 75 | 69 |
Short-term vacation rental This property is priced 24.0% above its fair value, making it less appealing for short-term vacation rentals, especially considering the competitive nature of the Algarve tourism market. With a gross yield of 5.9%, the investment does not align well with typical investor expectations in this sector. Family rental Although family rentals can benefit from the stable demand in the Algarve, this property is currently overpriced, compromising potential returns against market benchmarks. The condition rating of 83/100 suggests it is livable, but the elevated price limits its attractiveness for long-term tenant consideration. Buy-and-hold The buy-and-hold strategy hinges on long-term value appreciation, yet this property's 24.0% premium over fair value signals an unfavorable entry point for investors. While there is potential for capital appreciation, the economic reliance on tourism in the Algarve may not justify the current high asking price for sustained growth. Not ideal for: Student housing, Luxury market Given the current valuation, this property is not suitable for student housing or positioning in the luxury market, as these segments may yield lower returns relative to the investment. Overpricing detracts from the long-term viability in either category, particularly considering the existing condition and neighborhood ratings.
Economic and Tenant Instability Risk The property has an economic stability score of 65 and a tenant stability score of 65, indicating potential volatility in rental income and economic conditions that may affect long-term profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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