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.
5-bedroom, 3-bathroom house of 324 m², built in 1987, energy rating B. Located on praça de Carvoeiro, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa includes a wine cellar and is located just 100 meters from Praia do Paraíso, enhancing its appeal as a luxurious coastal retreat. Location: 100 m from Praia do Paraíso, with stunning sea views. Condition: Renovated approximately 20 years ago and has been meticulously maintained.
The valuation. The asking price of €1,900,000 sits very close to the fair value of €1,901,080, with a minimal difference of just €1,080, marking it as a fair investment opportunity.
Fair value modelled at €1,901,080 from 6 comparable sales in the area. Asking €1,900,000 sits €1,080 (0.1%) below — the upside to fair value.
Asking €1,900,000 versus the praça de Carvoeiro area baseline of €1,679,239 (€5,183/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €1,679,239, adjusted for condition and micro-location, gives a modelled fair value of €1,901,080 (€5,868/m²), a €1,080 (0.1%) gap versus the €1,900,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praça de Carvoeiro | Subject | €1,900,000 | €5,864 | — | 76 | 70 |
| Lagoa e Carvoeiro · 483ae7 | Active | €945,000 | €5,943 | 1.4% | 76 | 73 |
| rua da Palma S / N | Active | €3,499,000 | €9,306 | 58.7% | 75 | 64 |
| rua de Lobito | Active | €1,390,000 | €5,792 | 1.2% | 85 | 71 |
| rua da Guine-Bissau | Active | €1,190,000 | €5,107 | 12.9% | 75 | 72 |
| Median comp | €1,290,000 | €5,868 | 0.1% | 76 | 72 |
Short-term vacation rental This property presents a fair investment opportunity in the short-term vacation rental market, with consistent tourist demand in the Algarve region. However, the gross yield of 2.4% indicates that potential returns will be modest given the prevailing market dynamics. Buy-and-hold As a buy-and-hold investment, this property matches fair value, reflecting its stability in a tourism-driven economy. While it shows promise for long-term appreciation, the current yield does not provide significant cash flow for investors immediately. Value-add renovation The property is reasonably priced and can benefit from strategic renovation improvements, potentially boosting value and tenant appeal in the Algarve. However, the current condition rating of 75/100 suggests that significant investment might be required to enhance rental outcomes effectively.
Economic Vulnerability The economic stability score of 60/100 indicates potential risks in income fluctuations, which may affect the tenant's ability to consistently pay rent.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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