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.
3-bedroom, 2-bathroom country_house of 152 m², built in 2011, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Notable Features: The property includes a potential multi-generational setup with an additional cottage featuring two bedrooms and its own private pool amidst a sprawling 27,000 m² plot.
The valuation. The asking price of €1,300,000 exceeds the fair value of €872,062 by €427,938, representing 49.1% overpricing. This raises concerns for potential investors regarding the realistic value of the property in the current market. Buy-to-flip angle. A buy-to-flip strategy may struggle due to the significant premium over fair value, requiring substantial renovation or market changes to achieve profitable resale. The current condition of 73/100 does allow for some improvement potential, yet the price remains prohibitive. Buy-to-let angle. With an estimated gross yield of 2.2%, the rental income strategy focuses on short-term vacation rentals to maximize returns. The location's proximity to beaches supports attracting tourists, which enhances the profitability of this rental approach.
Fair value modelled at €872,062 from 6 comparable sales in the area. Asking €1,300,000 sits €427,938 (49.1%) above — overpriced versus fair value.
Asking €1,300,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €792,313 (€5,213/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €792,313, adjusted for condition and micro-location, gives a modelled fair value of €872,062 (€5,737/m²), a €427,938 (49.1%) gap versus the €1,300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 097036 | Subject | €1,300,000 | €8,553 | — | 68 | 74 |
| Lagoa e Carvoeiro · 6d5540 | Active | €695,000 | €5,697 | 33.4% | 75 | 74 |
| Lagoa e Carvoeiro · 5da106 | Active | €1,300,000 | €5,778 | 32.4% | — | 73 |
| rua de Moçambique S / N | Active | €990,000 | €4,853 | 43.3% | 75 | 74 |
| Lagoa e Carvoeiro · 4a4457 | Active | €995,000 | €8,156 | 4.6% | 78 | 68 |
| Median comp | €992,500 | €5,738 | 32.9% | 75 | 74 |
Short-term vacation rental Despite the strong tourism potential in Algarve, the current listing price of €1,300,000 is significantly above the fair value of €872,062, indicating a 49.1% premium that limits the investment's appeal. With a gross yield of only 2.2%, the expected returns do not justify the high entry cost for short-term vacation rentals in this location. Family rental While the property's 3-bed configuration and reasonable condition make it suitable for family rentals, its listing price of €1,300,000 suggests it is overpriced when compared to the fair value of €872,062. The resulting yield of 2.2% does not provide a competitive return, making it a less attractive option for long-term family rental investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is problematic due to its listing price of €1,300,000, which exceeds the fair value of €872,062 by 49.1%. The gross yield of 2.2% reflects insufficient cash flow potential, undermining the fundamental principles of a successful buy-and-hold investment strategy.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to economic fluctuations, which could affect rental income and property value.
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