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, 3-bathroom house of 205 m², built in 1999, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features a versatile basement ideal for a game room or private cinema, and an elegant summer kitchen annex, perfect for entertaining with panoramic views.
The valuation. The asking price of €990,000 is positioned 5.8% below the fair value of €1,051,440, making it a reasonable investment opportunity. This slight discount aligns the property more attractively with market expectations. Buy-to-flip angle. With an attractive asking price leading to a potential resale at fair value, this property could yield a profit margin of approximately €61,440. Targeting renovation enhancements could further elevate resale value in a thriving market. Buy-to-let angle. The estimated rental income of €3,135 per month leads to a gross yield of 3.8%, providing a stable income stream. Given the property’s luxury finishes and location in a tourist area, short-term vacation rentals could maximize earnings.
Fair value modelled at €1,051,440 from 6 comparable sales in the area. Asking €990,000 sits €61,440 (5.8%) below — the upside to fair value.
Asking €990,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €912,036 (€4,449/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €912,036, adjusted for condition and micro-location, gives a modelled fair value of €1,051,440 (€5,129/m²), a €61,440 (5.8%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 1f3405 | Subject | €990,000 | €4,829 | — | 75 | 79 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 23.1% | 75 | 70 |
| rua de Vale do Milho S / N | Active | €1,595,000 | €4,311 | 10.7% | 80 | 66 |
| Lagoa e Carvoeiro · cfe058 | Active | €1,350,000 | €5,947 | 23.1% | 77 | 72 |
| rua Covas Areia | Active | €875,000 | €2,814 | 41.7% | 75 | 76 |
| Median comp | €1,350,000 | €5,129 | 6.2% | 76 | 71 |
Short-term vacation rental The property's location in a tourist-focused region indicates strong potential for short-term vacation rentals. However, with a fair value gap of only 5.8% and a gross yield of 3.8%, the return may not justify the investment. Buy-and-hold Owning this property for long-term appreciation could align with the overall growth potential in Lagoa e Carvoeiro. Nevertheless, the fair valuation suggests that while the property is acceptable for holding, the investment may not yield significant long-term advantages compared to other opportunities. Luxury market While the property is well-suited for the luxury market due to its size and location, the listing price is aligned with its fair value, leaving limited room for appreciation. This positioning may limit upside potential in the competitive luxury segment of the Lagoa e Carvoeiro area.
Economic Dependency Risk Due to a moderate economic stability score of 75/100, there is a risk that economic fluctuations could impact tenant retention and rental income, potentially leading to increased vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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