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, 5-bathroom house of 457 m², built in 2020, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa boasts seamless indoor-outdoor connectivity with expansive terrace areas and a rooftop leisure space, enhancing the luxurious coastal living experience in Lagoa.
The valuation. The asking price of €3,850,000 is significantly above the fair value of €2,377,986, representing an overvaluation of €1,472,014 (61.9%). This property is therefore classified as overpriced.
Fair value modelled at €2,377,986 from 6 comparable sales in the area. Asking €3,850,000 sits €1,472,014 (61.9%) above — overpriced versus fair value.
Asking €3,850,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €2,006,974 (€4,392/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €2,006,974, adjusted for condition and micro-location, gives a modelled fair value of €2,377,986 (€5,203/m²), a €1,472,014 (61.9%) gap versus the €3,850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 51ca1e | Subject | €3,850,000 | €8,425 | — | 89 | 75 |
| rua de Moçambique S / N | Active | €1,580,000 | €3,192 | 62.1% | 79 | 73 |
| Estômbar e Parchal · 6a91bb | Active | €1,799,995 | €6,102 | 27.6% | 85 | 72 |
| rua Depósito de Água | Active | €2,300,000 | €10,599 | 25.8% | 82 | 74 |
| rua de Vale do Milho | Active | €645,000 | €2,710 | 67.8% | 82 | 73 |
| Median comp | €1,689,998 | €4,647 | 44.8% | 82 | 73 |
Short-term vacation rental The property is overpriced at €3,850,000, significantly above the fair value of €2,377,986, creating a 61.9% gap that undermines its potential for rental income. With a 0% gross yield, this investment lacks economic viability in the short-term rental market. Buy-and-hold Given the significant overvaluation of the house, purchasing it at €3,850,000 poses a risk for long-term appreciation versus the fair value of €2,377,986. The high entry price complicates the investment's ability to generate a meaningful return over time within a fluctuating market. Luxury market While the property is situated in a desirable area of Lagoa e Carvoeiro, the €3,850,000 asking price considerably exceeds its fair value of €2,377,986, marking it as overpriced. This disconnect may limit its appeal within the luxury market, where buyers typically seek properties that align more closely with their market value expectations.
Moderate Economic and Tenant Risk: With both the economic stability and tenant stability scores at 70/100, there is a moderate risk of fluctuations in occupancy rates and rental income due to potential economic downturns or tenant volatility.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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