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, 3-bathroom house of 192 m², built in 2006. Located on rua Depósito de Água, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The basement presents expansive potential for customization, while the property is part of a well-equipped condominium featuring diverse amenities, including a restaurant and children's playground.
The valuation. The asking price of €550,000 is slightly above the fair value of €544,094, with a discrepancy of €5,906 (1.1%). This property is considered to be valued fairly within the current market context. Buy-to-flip angle. Utilizing the property's quality finishes and desirable location, a buy-to-flip strategy could capitalize on the seasonal tourism demand, aiming for a profitable resale in the luxury market. Buy-to-let angle. With an estimated gross yield of 5.2% and potential monthly rental income of €2,383, a buy-to-let strategy leverages the area’s appeal for short-term vacation rentals.
Fair value modelled at €544,094 from 6 comparable sales in the area. Asking €550,000 sits €5,906 (1.1%) above — overpriced versus fair value.
Asking €550,000 versus the rua Depósito de Água area baseline of €407,153 (€2,121/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 €407,153, adjusted for condition and micro-location, gives a modelled fair value of €544,094 (€2,834/m²), a €5,906 (1.1%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Depósito de Água | Subject | €550,000 | €2,865 | — | 74 | 66 |
| Lagoa e Carvoeiro · a803b8 | Active | €545,000 | €3,516 | 22.7% | 78 | 74 |
| Lagoa e Carvoeiro · cbc062 | Active | €630,000 | €2,800 | 2.3% | 76 | 73 |
| Lagoa e Carvoeiro · 911293 | Active | €110,000 | €1,158 | 59.6% | 74 | 64 |
| Lagoa e Carvoeiro · a79db3 | Active | €390,000 | €2,868 | 0.1% | 74 | 71 |
| Median comp | €467,500 | €2,834 | 1.1% | 75 | 72 |
Short-term vacation rental The property achieves a gross yield of 5.2%, which is attractive for short-term vacation rental investors looking to capitalize on the steady demand from tourism in the Algarve. However, the slight gap of 1.1% compared to fair value indicates that while it's a balanced investment, there may not be significant room for price appreciation in the near future. Buy-and-hold With a fair value of €544,094 and a current listing price of €550,000, this property presents a stable investment for a buy-and-hold strategy, as it offers reasonable cash flow from rental income. The condition rating of 76/100 suggests it is in decent shape, but future investors should be mindful of additional maintenance costs that could affect overall returns. Luxury market Positioned in the well-regarded Lagoa e Carvoeiro area, this property is aligned with the luxury market segment, but the minimal gap from fair value indicates a limited potential for immediate capital gains. On the other hand, its proximity to the Algarve's tourist hotspots does provide a sustainable appeal to affluent buyers, though current valuations are decidedly at a fair level. Not ideal for student housing Given the rating of the neighborhood at 66/100, this property is not suitable for student housing as it may lack the necessary amenities and tenant quality desired by this demographic. The seasonal nature of tourism in the Algarve also negatively impacts stability, making this an unlikely fit for a student rental market. Not ideal for long-term rental The current conditions and the local housing market's performance suggest that this property would not be ideal for long-term rentals, as the neighbourhood rating reflects potential challenges in tenant satisfaction and retention. Additionally, the property’s proximity to tourist spots offers limited appeal to long-term tenants seeking stable living situations. Not ideal for industrial investment This residential property in Lagoa e Carvoeiro is clearly not suited for industrial investment, as it is contextually aligned with the vacation and luxury segments rather than commercial or industrial use. With a focus on residential appeal, the surrounding area lacks the infrastructural support needed for industrial endeavors.
Potential Investment Fluctuation With both economic and tenant stability scores at 60/100, there's a significant risk of unstable cash flows due to potential tenant turnover and underlying economic conditions impacting rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
