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 house of 195 m², energy rating C. Located on rua Areias dos Moinhos, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property features a versatile office space easily convertible into a guest suite, alongside a private pool surrounded by beautifully landscaped and mature gardens for enhanced tranquility.
The valuation. The asking price of €1,265,000 sits above the fair value of €1,213,835 by €51,165 (4.2%). Verdict: fair.
Fair value modelled at €1,057,783 from 5 comparable sales in the area. Asking €1,265,000 sits €207,217 (19.6%) above — overpriced versus fair value.
Asking €1,265,000 versus the rua Areias dos Moinhos area baseline of €917,856 (€4,707/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 €917,856, adjusted for condition and micro-location, gives a modelled fair value of €1,057,783 (€5,425/m²), a €207,217 (19.6%) gap versus the €1,265,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Areias dos Moinhos | Subject | €1,265,000 | €6,487 | — | 78 | 71 |
| Lagoa e Carvoeiro · 56a2bd | Active | €999,000 | €6,890 | 6.2% | 83 | 70 |
| Lagoa e Carvoeiro · 9d2903 | Active | €1,150,000 | €5,425 | 16.4% | 72 | 67 |
| rua da Guine-Bissau | Active | €1,190,000 | €5,107 | 21.3% | 75 | 72 |
| rua dos Pescadores | Active | €1,350,000 | €5,947 | 8.3% | 75 | 70 |
| Median comp | €1,170,000 | €5,686 | 12.4% | 75 | 70 |
Short-term vacation rental The property is well-positioned within the tourist-friendly region of Algarve, catering to holidaymakers drawn to beautiful beaches. However, with a rental yield of only 2%, the expected cash flow doesn't justify the current market price, even if it's rated fair. Long-term rental As a long-term rental, this property benefits from decent tenant quality in a desirable area, making it a stable investment. Nonetheless, the provided fair value does not support a robust return, suggesting it may underperform relative to better investment opportunities. Buy-and-hold Investing in this property as a buy-and-hold may yield moderate appreciation over time due to its location. However, with a price only marginally above fair value and a modest rental yield, potential gains could be limited in comparison to other market options.
Moderate Economic Risk The economic stability score of 60/100 indicates potential volatility in the local economy that could impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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