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, 5-bathroom villa of 223 m², built in 2006, energy rating E. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The villa includes the possibility to develop a 111 m² penthouse with stunning sea views, enhancing its investment potential and lifestyle appeal. Condition Notes: While well-maintained, the interior finishes in the kitchen and bedrooms are dated, suggesting the need for updates to achieve modern aesthetics.
The valuation. The asking price of €1,895,000 sits significantly above the fair value of €1,044,694, making it overpriced by €850,306 (81.4%). This discrepancy suggests that potential investors may find limited upside in immediate resale opportunities.
Fair value modelled at €1,044,694 from 6 comparable sales in the area. Asking €1,895,000 sits €850,306 (81.4%) above — overpriced versus fair value.
Asking €1,895,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €996,128 (€4,467/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €996,128, adjusted for condition and micro-location, gives a modelled fair value of €1,044,694 (€4,685/m²), a €850,306 (81.4%) gap versus the €1,895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 2cdf44 | Subject | €1,895,000 | €8,498 | — | 62 | 76 |
| rua Covas Areia | Active | €875,000 | €2,814 | 66.9% | 75 | 76 |
| rua de Vale do Milho | Active | €1,399,000 | €6,218 | 26.8% | — | 71 |
| Lagoa e Carvoeiro · cfe058 | Active | €1,350,000 | €5,947 | 30.0% | 77 | 72 |
| rua do Pestana Golf Resort | Active | €1,300,000 | €5,652 | 33.5% | 70 | 80 |
| Median comp | €1,325,000 | €5,800 | 31.8% | 75 | 74 |
Short-term vacation rental The high listing price of €1,895,000 reflects a significant 81.4% gap from the fair value of €1,044,694, indicating that this property is overpriced for its potential as a short-term rental. Despite the tourist appeal of Lagoa e Carvoeiro, the 1.7% gross yield suggests that maximizing income through vacation rentals may not be feasible at this valuation. Buy-and-hold With a fair value of €1,044,694 and a significant price gap, this villa appears overpriced for long-term investment strategies like buy-and-hold. In a market with growing rental demand, the 68/100 condition score hints at the necessity for future upgrades to fit the needs of potential tenants, further impacting profitability. Value-add renovation Considering the current market conditions and the significant price overvaluation, pursuing a value-add renovation strategy is limited by the €1,895,000 price tag. Although the neighborhood's safety and economic stability provide opportunities, the 68/100 condition score indicates that substantial investment would be necessary to realize any value uplift above the current asking price.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns potentially affecting property values and rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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