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.
3-bedroom, 3-bathroom penthouse of 250 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This penthouse features expansive wraparound terraces with stunning views of the old town, enhancing both outdoor living and entertainment options.
The valuation. The asking price of €450,000 sits significantly below the fair value of €730,634, indicating the property is underpriced by €280,634 or 38.4%. This presents an attractive opportunity for investors looking to maximize rental or resale potential.
Fair value modelled at €730,634 from 6 comparable sales in the area. Asking €450,000 sits €280,634 (38.4%) below — the upside to fair value.
Asking €450,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €572,362 (€2,289/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €572,362, adjusted for condition and micro-location, gives a modelled fair value of €730,634 (€2,923/m²), a €280,634 (38.4%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 4a4341 | Subject | €450,000 | €1,800 | — | 75 | 69 |
| Estômbar e Parchal · 438eeb | Active | €395,000 | €2,782 | 54.5% | 78 | 73 |
| rua Francisco Sá Carneiro S / N | Active | €350,000 | €3,241 | 80.0% | 70 | 75 |
| rua Carlos Alberto Correia Ribeiro, 20 | Active | €390,000 | €2,516 | 39.8% | 78 | 73 |
| Estômbar e Parchal · 225adf | Active | €395,000 | €2,782 | 54.5% | 75 | 73 |
| Median comp | €392,500 | €2,782 | 54.6% | 77 | 73 |
Long-term rental The property, listed at €450,000, has a fair value of €730,634, indicating a significant opportunity with a gap of 38.4% below fair value, making it an attractive long-term rental investment. While yielding 0% gross currently, its location in a tourist-heavy area ensures stable demand for long-term leasing, especially as the economy is bolstered by tourism. Short-term vacation rental Given the favorable fair value gap of 38.4% when listed at €450,000, this property stands out as an appealing option for short-term vacation rentals in Lagoa e Carvoeiro. Its proximity to tourist attractions enhances its potential for lucrative short-term rental income, despite currently showing a 0% gross yield. Buy-and-hold The property is currently valued at €450,000, well below its fair value of €730,634, offering a promising buy-and-hold opportunity with a substantial potential appreciation of 38.4%. This is particularly enticing in the context of the region's reliance on tourism and its favorable rental market conditions, suggesting strong future growth. Not ideal for: This 3-bed penthouse is not suited for student housing due to its location preferences and higher price point. Furthermore, it does not cater to the luxury market or industrial development due to the neighborhood dynamics and the property’s condition rating of 75/100.
Economic Vulnerability A lower economic stability score of 60/100 indicates a risk of potential economic downturns affecting rental demand and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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