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 house of 246 m², energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. The property features a magnificent upper floor terrace with a deck and pergola, offering stunning sea views, and a spacious unfinished basement that provides potential for customization.
The valuation. The asking price of €475,000 is significantly below the fair value of €803,762, indicating it is underpriced by €328,762 (40.9%). This presents a compelling opportunity for investors seeking value in a desirable location.
Fair value modelled at €803,762 from 5 comparable sales in the area. Asking €475,000 sits €328,762 (40.9%) below — the upside to fair value.
Asking €475,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €842,837 (€3,426/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €842,837, adjusted for condition and micro-location, gives a modelled fair value of €803,762 (€3,267/m²), a €328,762 (40.9%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · a80a72 | Subject | €475,000 | €1,931 | — | 70 | 80 |
| Lagoa e Carvoeiro · 6229b4 | Active | €330,000 | €3,267 | 69.2% | 70 | 70 |
| Lagoa e Carvoeiro · a803b8 | Active | €545,000 | €3,516 | 82.1% | 78 | 74 |
| Lagoa e Carvoeiro · 1906dc | Active | €150,000 | €2,830 | 46.6% | 63 | 64 |
| Lagoa e Carvoeiro · 1f35d7 | Active | €425,000 | €3,269 | 69.3% | — | 65 |
| Median comp | €377,500 | €3,268 | 69.2% | 70 | 68 |
Short-term vacation rental The property's proximity to the Algarve coast makes it an attractive option for short-term vacation rentals, capitalizing on the region's booming tourism market. With a gross yield of 6.2%, this property presents a lucrative opportunity for generating rental income in a desirable location. Buy-and-hold With a fair value of €803,762 and a listing price of €475,000, this property is underpriced by 40.9%, making it an ideal candidate for a buy-and-hold strategy. Investors can benefit from both immediate rental income and long-term appreciation in an upscale neighborhood rated 80/100. Luxury market Positioned in the Algarve, recognized for its scenic beauty, this 2-bed house offers a unique opportunity to enter the luxury real estate market at an advantageous price point. Given the high fair value and attractive rental yield, this property aligns well with premium buyers looking for a vacation retreat. Not ideal for Student housing, Industrial use, Agricultural development are unsuitable strategies for this property given its residential zoning and focus on tourism-oriented uses.
Economic downturn risk A 70/100 economic stability score indicates potential vulnerability to economic fluctuations, which could impact long-term occupancy 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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