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, 2-bathroom house of 283 m², built in 1995, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property boasts a unique vegetable garden and various fruit trees, enhancing its potential for sustainable living in the heart of nature near picturesque Algarve beaches.
The valuation. The asking price of €1,250,000 is significantly below the fair value of €1,457,095, making it an attractive opportunity at €207,095 or 14.2% underpriced. This positions the property as a great investment within the current market.
Fair value modelled at €1,457,095 from 6 comparable sales in the area. Asking €1,250,000 sits €207,095 (14.2%) below — the upside to fair value.
Asking €1,250,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,275,358 (€4,507/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €1,275,358, adjusted for condition and micro-location, gives a modelled fair value of €1,457,095 (€5,149/m²), a €207,095 (14.2%) gap versus the €1,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · f5eb90 | Subject | €1,250,000 | €4,417 | — | 75 | 73 |
| Estômbar e Parchal · 6ebb1c | Active | €735,000 | €4,742 | 7.4% | 80 | 74 |
| Estômbar e Parchal · be959d | Active | €1,390,000 | €5,792 | 31.1% | 80 | 68 |
| Lagoa e Carvoeiro · 90d75b | Active | €740,000 | €8,315 | 88.2% | — | 73 |
| Lagoa e Carvoeiro · 1f35d7 | Active | €425,000 | €3,269 | 26.0% | — | 65 |
| Median comp | €737,500 | €5,267 | 19.2% | 80 | 71 |
Short-term vacation rental The 3-bed house in Lagoa e Carvoeiro presents an attractive opportunity for short-term vacation rentals, with a fair value indicating a 14.2% upside compared to the listing price. Given Algarve's status as a prime tourist destination, the demand for vacation accommodations is consistently high, ensuring steady occupancy rates. Long-term rental A long-term rental strategy for this property could yield stable cash flow, particularly given the low crime rates in Algarve, enhancing its appeal to families and professionals. With a gross yield of 2.2%, the property offers potential rental income above its purchase price, supporting a favorable investment outlook. Buy-and-hold Investing in this property for a buy-and-hold strategy could provide significant value appreciation, as it is currently subvalorizada and located in a desirable area with good tenant quality. Over time, the favourable market conditions in Algarve suggest that property values are likely to increase, making this a compelling long-term investment option.
Economic Vulnerability The property faces a risk of fluctuating income stability due to its economic stability score of 65, which indicates potential economic weaknesses that may affect overall tenant retention and rent collection.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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