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 villa of 204 m², built in 2001, energy rating C. Located on rua de Moçambique S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The villa includes a spacious rooftop terrace with sea views and an advanced solar system for energy efficiency, enhancing both leisure and sustainability.
The valuation. The asking price of €990,000 is significantly below the fair value of €1,256,975, resulting in a favorable difference of €266,975 (21.2%). This property is considered underpriced, presenting a compelling opportunity for investors. Buy-to-flip angle. The strategy for resale will focus on targeted renovations to enhance appeal, with an anticipated return by flipping to investors or homebuyers in the thriving Algarve market. Buy-to-let angle. Implementing a buy-to-let strategy could generate estimated monthly rental income of €2,805, yielding approximately 3.4%, benefiting from the strong tourism demand in the area as a vacation rental.
Fair value modelled at €1,256,975 from 6 comparable sales in the area. Asking €990,000 sits €266,975 (21.2%) below — the upside to fair value.
Asking €990,000 versus the rua de Moçambique S / N area baseline of €1,096,840 (€5,377/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 €1,096,840, adjusted for condition and micro-location, gives a modelled fair value of €1,256,975 (€6,162/m²), a €266,975 (21.2%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Moçambique S / N | Subject | €990,000 | €4,853 | — | 75 | 74 |
| Lagoa e Carvoeiro · 4a4457 | Active | €995,000 | €8,156 | 68.1% | 78 | 68 |
| rua Areias dos Moinhos | Active | €1,265,000 | €6,487 | 33.7% | 78 | 71 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 0.5% | 70 | 70 |
| rua do Pestana Golf Resort, 128 | Active | €1,100,000 | €5,556 | 14.5% | 75 | 72 |
| Median comp | €1,147,500 | €6,022 | 24.1% | 77 | 71 |
Short-term vacation rental The villa's fair value surpasses its listing price by 21.2%, indicating potential for short-term vacation rental success due to favorable market conditions. With a gross yield of 3.4% and its tourist-centric location near Albufeira, this property is positioned well for maximizing rental income. Buy-and-hold Acquiring this villa offers a strategic buy-and-hold investment due to its subvalued price compared to the fair market value. The property’s condition rating of 78/100 and neighborhood score of 74/100 suggest stable long-term potential while leveraging the strong tourism-driven demand in Algarve. Value-add renovation Investors can benefit from a value-add renovation strategy given the existing fair value gap of 21.2%, which allows room for property enhancement and appreciation. Improving the villa could not only elevate its condition rating but also increase rental appeal in a popular tourist area. Not ideal for With a gross yield of only 3.4% and the property’s condition and neighborhood ratings, this villa is not suited for student housing or luxury market positioning, nor does it cater well to family rental demands.
Economic downturn risk The property could face instability due to a relatively moderate economic stability score of 65/100, indicating potential vulnerability to market fluctuations that could affect tenant demand 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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