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, 4-bathroom villa of 316 m², built in 2006, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa boasts extensive outdoor terraces ideal for entertaining and a BBQ area surrounded by meticulously landscaped gardens, enhancing the outdoor living experience.
The valuation. The asking price of €1,050,000 is significantly above the fair value of €895,004, representing a difference of €154,996 or 17.3%. Therefore, this property is overpriced.
Fair value modelled at €895,004 from 6 comparable sales in the area. Asking €1,050,000 sits €154,996 (17.3%) above — overpriced versus fair value.
Asking €1,050,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €674,072 (€2,133/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €674,072, adjusted for condition and micro-location, gives a modelled fair value of €895,004 (€2,832/m²), a €154,996 (17.3%) gap versus the €1,050,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 51cb63 | Subject | €1,050,000 | €3,323 | — | 74 | 70 |
| Lagoa e Carvoeiro · c17977 | Active | €699,000 | €3,513 | 5.7% | 80 | 68 |
| estrada do Farol S / N | Active | €1,495,000 | €3,279 | 1.3% | 85 | 69 |
| Lagoa e Carvoeiro · 828f9c | Active | €580,000 | €2,762 | 16.9% | 72 | 70 |
| Lagoa e Carvoeiro · ee880a | Active | €580,000 | €2,762 | 16.9% | 75 | 69 |
| Median comp | €639,500 | €3,021 | 9.1% | 78 | 69 |
Short-term vacation rental Despite the potential of Lagoa and Carvoeiro as prime tourist destinations, the property’s price of €1,050,000 exceeds its fair value of €895,004 by 17.3%, indicating that it is overpriced for a vacation rental investment. Additionally, with a gross yield of only 1.4%, the rental returns may not justify the high initial costs and ongoing expenses. Long-term rental Given the property’s 1.4% gross yield and its valuation of €1,050,000, it is overpriced compared to its fair value of €895,004, suggesting limited long-term rental profitability. The condition and neighborhood ratings of 76/100 and 70/100 respectively further indicate that tenant demand may not sufficiently compensate for a high purchase price. Buy-and-hold With its highly inflated price of €1,050,000 versus a fair value of €895,004, this property is overpriced for a buy-and-hold strategy, which typically seeks appreciation over time. Furthermore, the current yield of 1.4% does not align with the expected returns necessary to offset the premium paid for this property, hindering long-term investment viability.
Economic sensitivity risk The property may face economic challenges due to its economic stability score of 65, suggesting vulnerability to market fluctuations that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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