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, 3-bathroom townhouse of 180 m², built in 2005, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The townhouse includes a covered terrace that serves as a versatile second living area and a rooftop terrace with stunning sea views, perfect for entertaining guests.
The valuation. The asking price of €399,000 is significantly below the fair value of €496,859, representing a discount of €97,859 (19.7%). This indicates the property is underpriced and presents a compelling opportunity for investors.
Fair value modelled at €496,859 from 6 comparable sales in the area. Asking €399,000 sits €97,859 (19.7%) below — the upside to fair value.
Asking €399,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €369,419 (€2,052/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €369,419, adjusted for condition and micro-location, gives a modelled fair value of €496,859 (€2,760/m²), a €97,859 (19.7%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 19083a | Subject | €399,000 | €2,217 | — | 72 | 67 |
| Lagoa e Carvoeiro · 911293 | Active | €110,000 | €1,158 | 47.8% | 74 | 64 |
| rua do Casino | Active | €690,000 | €2,537 | 14.4% | 86 | 72 |
| rua de Moçambique S / N | Active | €435,000 | €2,417 | 9.0% | 74 | 73 |
| Lagoa e Carvoeiro · 6d5540 | Active | €695,000 | €5,697 | 157.0% | 75 | 74 |
| Median comp | €562,500 | €2,477 | 11.7% | 75 | 73 |
Short-term vacation rental This property presents a compelling opportunity for short-term vacation rental given its gross yield of 5% and proximity to a popular coastal tourist area in the Algarve. With a fair value significantly higher than the listing price (€496,859), the potential for high returns in a tourist-driven economy is attractive. Long-term rental As a long-term rental property, this townhouse benefits from a fair value assessment that exceeds its listing price, suggesting a strong investment proposition with a 19.7% gap. The location's appeal, supported by the local economy's reliance on tourism, positions this property as an attractive choice for steady rental income. Family rental Targeting families as tenants, this property aligns well with community needs given its favorable condition score of 76/100, enhancing livability. Notably, the gap to fair value reinforces its position as a competitive option for families seeking quality housing in a thriving neighborhood.
Economic Vulnerability The property faces potential financial instability due to its low economic stability score of 55/100, which suggests a weaker economic environment that could impact investment returns. Tenancy Risk The tenant stability score of 60/100 indicates that while tenants may be somewhat stable, there is still a considerable risk of lease turnover that can affect cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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