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 161 m². Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This property includes a two-bedroom cottage with its own pool, providing versatile accommodation options and extra privacy on the large plot planted with mature fruit trees.
The valuation. The asking price of €1,300,000 is significantly above the fair value of €712,046, resulting in an overpriced status with a discrepancy of €587,954, or 82.6%. This valuation indicates a poor investment potential. Buy-to-flip angle. The resale strategy focuses on short-term vacation rentals, capitalizing on the Algarve's tourism to generate heightened demand and attractive offers for resale. A renovation could further enhance its market appeal. Buy-to-let angle. With an estimated gross yield of 1.7%, the rental income strategy would involve either long-term leasing or vacation rentals, but the low yield suggests limited profitability for buy-and-hold investors.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · a803e5 | Subject | €1,300,000 | €8,075 | — | — | 70 |
| Lagoa e Carvoeiro · 5da106 | Active | €1,300,000 | €5,778 | 28.4% | — | 73 |
| rua do Asilo | Active | €465,000 | €2,193 | 72.8% | 48 | 72 |
| Lagoa e Carvoeiro · f35f4c | Active | €615,000 | €3,968 | 50.9% | 60 | 71 |
| Lagoa e Carvoeiro · 6d5568 | Active | €1,290,000 | €3,057 | 62.1% | — | 64 |
| Median comp | €952,500 | €3,513 | 56.5% | 54 | 72 |
Short-term vacation rental This 3-bed villa in Lagoa e Carvoeiro is overpriced at €1,300,000 compared to the fair value of €712,046, highlighting a significant gap of 82.6%. With a low yield of 1.7% and a condition rating of 0 out of 100, the investment is unlikely to attract desirable short-term rental income from the area's tourist amenities. Long-term rental The asking price of €1,300,000 for this property is significantly higher than its fair value of €712,046, resulting in an 82.6% gap that detracts from its appeal as a long-term rental investment. Additionally, the property’s poor condition and low gross yield of 1.7% suggest that it will struggle to generate stable rental returns. Buy-and-hold At €1,300,000, this villa is overpriced relative to its fair value of €712,046, creating an 82.6% gap that limits its viability as a buy-and-hold asset. The extremely low yield of 1.7% combined with a condition score of 0 out of 100 indicates that holding this property will likely result in unfavorable financial performance over time.
Tenant turnover risk There is a risk of high tenant turnover due to a tenant stability score of 60/100, potentially leading to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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