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.
5-bedroom, 5-bathroom house of 340 m², built in 1998, energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Unique Feature: The property includes a spectacular wine cellar capable of holding over 900 bottles, complemented by a communal bar and a fully equipped gym with a Turkish bath and sauna. Nota: Esta propriedade apresenta uma escada magnífica na entrada, destacando o estilo único e a grandiosidade do espaço.
The valuation. The asking price of €2,400,000 exceeds the fair value of €2,125,594 by €274,406 (12.9%), indicating it is overpriced for the current market conditions. Buy-to-flip angle. With strategic renovations targeting high-end finishes, this property could be repositioned and marketed to attract buyers at a premium, aiming for a substantial resale profit. Buy-to-let angle. By leveraging the property’s high-end features for short-term vacation rentals, it has potential for consistent income, estimated at €2,200/month, yielding approximately 1.1%.
Fair value modelled at €2,125,594 from 6 comparable sales in the area. Asking €2,400,000 sits €274,406 (12.9%) above — overpriced versus fair value.
Asking €2,400,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,853,392 (€5,451/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €1,853,392, adjusted for condition and micro-location, gives a modelled fair value of €2,125,594 (€6,252/m²), a €274,406 (12.9%) gap versus the €2,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 2cddb8 | Subject | €2,400,000 | €7,059 | — | 82 | 65 |
| estrada de Benagil | Active | €2,200,000 | €6,286 | 11.0% | 80 | 64 |
| rua de Vale do Milho S / N | Active | €1,595,000 | €4,311 | 38.9% | 80 | 66 |
| estrada do Algar Seco | Active | €2,500,000 | €7,267 | 3.0% | 72 | 75 |
| estrada do Farol S / N | Active | €1,495,000 | €3,279 | 53.6% | 84 | 64 |
| Median comp | €1,897,500 | €5,299 | 24.9% | 80 | 65 |
Short-term vacation rental The property is priced at €2,400,000, exceeding its fair value of €2,125,594, indicating it is overpriced by 12.9%. With a gross yield of only 1.1%, investing in this short-term vacation rental may not deliver the expected returns in this competitive Algarve coastline market. Buy-and-hold At a listing price of €2,400,000, the property surpasses fair value by €274,406, suggesting a lack of value appreciation potential for buy-and-hold strategies. The neighborhood rating of 65/100 further signals that long-term investment may not yield satisfactory tenant quality or rental income. Value-add renovation Although potential renovations could enhance the property, it is currently overpriced at €2,400,000 compared to its fair value of €2,125,594, making it a risky value-add renovation investment. The current condition score of 80/100 gives some room for improvement, but the 12.9% gap from fair value diminishes the attractiveness of this strategy in a challenging market environment.
Economic and Tenant Instability Risk The property faces a risk of reduced cash flow due to both the economic stability and tenant stability scores being at a moderate 60/100, which may indicate potential challenges in tenant retention and local market conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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