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.
2-bedroom, 2-bathroom house of 130 m², built in 2011, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This residence boasts exclusive access to three communal pools and a picturesque garden, enhancing leisure opportunities for residents in the vibrant Hibiscus Garden community.
The valuation. The asking price of €425,000 is above the fair value of €393,198 by €31,802 (8.1%). While the valuation is fair, potential investors should proceed with caution given the slight premium.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 1f35d7 | Subject | €425,000 | €3,269 | — | — | 65 |
| Lagoa e Carvoeiro · 911293 | Active | €110,000 | €1,158 | 64.6% | 74 | 64 |
| Lagoa e Carvoeiro · 49b71c | Active | €130,000 | €1,083 | 66.9% | 80 | 60 |
| Lagoa e Carvoeiro · 261eb2 | Active | €670,000 | €4,653 | 42.3% | 76 | 77 |
| urbanização dos Salicos | Active | €319,000 | €4,833 | 47.8% | 50 | 72 |
| Median comp | €224,500 | €2,906 | 11.1% | 75 | 68 |
Short-term vacation rental The property meets the requirements for short-term vacation rentals, given its strategic location in a tourism-centric area. However, with a fair value of €393,198 compared to the listing price of €425,000, the potential return on investment appears limited with a gross yield of 3.2%. Buy-and-hold While the long-term stability of the Algarve region may support rental income, the current valuation suggests that the property's potential for capital appreciation may not be compelling. The fair value gap of 8.1% signals that the property is priced at a level that does not provide a significant margin for further growth. Value-add renovation Investing in value-add renovations could enhance the property’s appeal and rental income, but the initial pricing indicates limited upside potential given its current condition score of 0/100. The cost of renovations may not be justified based on the property’s existing fair market position, making it a less attractive investment opportunity. Not ideal for student housing Due to the property's characteristics and location, it is not suited for student housing, which typically requires more affordable and centrally located options. The neighbourhood rating of 65/100 suggests that while there are some amenities, it does not cater specifically to student needs. Not ideal for luxury market Given the property’s fair value stance and condition, it does not align with the expectations of the luxury market. The 3.2% yield does not meet the higher returns typically sought by luxury investors, making this property less appealing in that segment.
Tenant turnover risk: With both economic stability and tenant stability scores at 60/100, there is a potential risk of higher tenant turnover, which can lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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