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 house of 456 m², built in 1993, energy rating C. Located on estrada do Farol S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property boasts a spacious outdoor terrace with breathtaking distant sea views, perfect for entertaining and enjoying the serene landscape.
The valuation. The asking price of €1,495,000 is significantly below the fair value of €2,747,130, resulting in a discount of €1,252,130 (45.6%). This property is underpriced, presenting an attractive investment opportunity.
Fair value modelled at €2,747,130 from 6 comparable sales in the area. Asking €1,495,000 sits €1,252,130 (45.6%) below — the upside to fair value.
Asking €1,495,000 versus the estrada do Farol S / N area baseline of €2,609,367 (€5,722/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 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 €2,609,367, adjusted for condition and micro-location, gives a modelled fair value of €2,747,130 (€6,024/m²), a €1,252,130 (45.6%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Farol S / N | Subject | €1,495,000 | €3,279 | — | 84 | 64 |
| Lagoa e Carvoeiro · 0dcdc8 | Active | €1,450,000 | €6,682 | 103.8% | 80 | 75 |
| Lagoa e Carvoeiro · 49b8f5 | Active | €5,000,000 | €13,587 | 314.4% | 75 | 73 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 81.4% | 75 | 70 |
| Estômbar e Parchal · 6a91bb | Active | €1,799,995 | €6,102 | 86.1% | 85 | 72 |
| Median comp | €1,624,998 | €6,392 | 95.0% | 78 | 73 |
Short-term vacation rental The property presents a significant opportunity for short-term vacation rentals, given its prime location in a desirable coastal tourist area. With fair value showing a 45.6% gap, the investment potential aligns well with the growing demand for holiday accommodations in the Algarve. Buy-and-hold Investing in this property for a buy-and-hold strategy could yield long-term benefits, especially as the market's upward trajectory continues with rising property values in the region. The current valuation advantage demonstrates a compelling case for retaining the asset as the neighbourhood develops further. Value-add renovation Implementing a value-add renovation strategy could enhance the property's appeal and align it with market standards, thus closing the gap to fair value. Given the condition rating of 87/100, minor improvements can effectively unlock additional equity and rental potential in this sought-after location.
Economic and Tenant Instability The property faces a significant risk due to its low economic stability score of 55/100 and a tenant stability score of 50/100, indicating potential challenges in maintaining consistent rental income and property value appreciation.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
