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 84 m², built in 2005, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Highlight: This apartment features a private rooftop terrace with a concrete barbecue and stunning panoramic sea views, perfect for outdoor dining and enjoying sunsets in complete privacy.
The valuation. The asking price of €450,000 is significantly above the fair value of €358,285, making it overpriced by €91,715 (25.6%). Such a premium indicates that potential investors should approach with caution. Buy-to-flip angle. The refurbishment and resale strategy may yield a modest return, but this property’s overpriced status complicates quick flips unless substantial value-add improvements are implemented. Buy-to-let angle. With an estimated rental income of €825/month, the gross yield stands at a modest 2.2%. This strategy may appeal to those interested in long-term stability, albeit with limited cash flow.
Fair value modelled at €358,285 from 6 comparable sales in the area. Asking €450,000 sits €91,715 (25.6%) above — overpriced versus fair value.
Asking €450,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €327,961 (€3,904/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 is below the parish average, reducing 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 €327,961, adjusted for condition and micro-location, gives a modelled fair value of €358,285 (€4,265/m²), a €91,715 (25.6%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · c1797a | Subject | €450,000 | €5,357 | — | 76 | 72 |
| Lagoa e Carvoeiro · 1e6002 | Active | €395,000 | €4,877 | 9.0% | 76 | 70 |
| Estômbar e Parchal · 225adf | Active | €395,000 | €2,782 | 48.1% | 75 | 73 |
| rua de Moçambique S / N | Active | €495,000 | €4,950 | 7.6% | 75 | 72 |
| Lagoa e Carvoeiro · bf2856 | Active | €430,000 | €3,805 | 29.0% | 70 | 69 |
| Median comp | €412,500 | €4,341 | 19.0% | 75 | 71 |
Short-term vacation rental The property is priced at €450,000, significantly above its fair value of €358,285, leading to a 25.6% gap that undermines its attractiveness for vacation rentals. With a gross yield of only 2.2%, this investment does not align with profitable short-term rental strategies in a primarily tourist-focused area. Buy-and-hold At a listing price of €450,000, the acquisition of this property would be a suboptimal long-term investment given its fair value of €358,285 and a moderate yield of 2.2%. Considering the local economy's dependence on tourism, the sustained price overvaluation hampers its potential for reliable appreciation over time. Long-term rental Given the current market price of €450,000, which exceeds the fair value by 25.6%, this property is not a suitable candidate for long-term rental strategies. The low gross yield of 2.2% further indicates that this investment lacks the necessary return profile for a fulfilling and sustainable rental income. Not ideal for: Student housing, Industrial logistics, High-density urban development.
Tenant turnover risk A tenant stability score of 70/100 suggests moderate risk of turnover, which may impact rental income and increase vacancy periods.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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