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, 1-bathroom house of 53 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes a charming terrace with storage, and its location in a calm area near essential services enhances its investment potential. Habitable Condition: Requires updating but retains functionality.
The valuation. The asking price of €150,000 is slightly below the fair value of €152,834, indicating a marginal discount of €2,834 (1.9%). Overall, the property is considered to be fairly priced. Buy-to-flip angle. The property can be refreshed for a resale strategy, leveraging its average quality and custom touches to attract buyers looking for updated homes in the Algarve. A modest renovation may yield a profitable return. Buy-to-let angle. With the area being a major tourist region, it presents opportunities for short-term vacation rentals despite the property currently showing a gross yield of 0%. A shift to rental can capitalize on seasonal demand.
Fair value modelled at €152,834 from 6 comparable sales in the area. Asking €150,000 sits €2,834 (1.9%) below — the upside to fair value.
Asking €150,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €150,998 (€2,849/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €150,998, adjusted for condition and micro-location, gives a modelled fair value of €152,834 (€2,884/m²), a €2,834 (1.9%) gap versus the €150,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 1906dc | Subject | €150,000 | €2,830 | — | 63 | 64 |
| Lagoa e Carvoeiro · 6229b4 | Active | €330,000 | €3,267 | 15.4% | 70 | 70 |
| rua Padre Antão S / N | Active | €325,000 | €1,693 | 40.2% | 65 | 73 |
| Lagoa e Carvoeiro · 1f35d7 | Active | €425,000 | €3,269 | 15.5% | — | 65 |
| Estômbar e Parchal · f5e99e | Active | €450,000 | €2,500 | 11.7% | 82 | 64 |
| Median comp | €377,500 | €2,884 | 1.9% | 70 | 68 |
Short-term vacation rental The property, while situated in the Algarve, a popular tourist destination, does not currently generate a gross yield, which may limit its attractiveness as a short-term vacation rental investment. Additionally, with a fair value only slightly higher than the listing price, potential cash flow issues could arise, particularly given the transient nature of seasonal economic activities. Long-term rental Investing in this property for long-term rental purposes may be risky, as the current yield is 0%, indicating no rental income generation at present. The moderate condition and neighbourhood ratings suggest limited appeal to long-term tenants, which could result in potential vacancy challenges. Buy-and-hold Acquiring this property as a buy-and-hold investment is questionable, given that it registers a 0% yield and only a small gap above fair value, presenting minimal upside potential. Moreover, the condition and neighbourhood quality are average, which may impact long-term appreciation and limit future investment opportunities.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk that local economic fluctuations could negatively impact property value and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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