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.
1-bedroom, 1-bathroom apartment of 60 m², built in 1995. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This apartment includes access to a communal swimming pool and landscaped gardens, enhancing its appeal for rental opportunities or personal enjoyment.
The valuation. The asking price of €175,000 sits €25,310 (12.6%) below the fair value of €200,310, indicating a strong buying opportunity without overvaluation concerns. Buy-to-flip angle. A resale strategy could capitalize on the underpriced nature, aiming for a quick flip at a higher rate given the property's decent condition and prime location. Buy-to-let angle. With an estimated gross yield of 6.3%, the rental income strategy involves utilizing short-term vacation rentals to maximize earnings, capitalizing on the Algarve's tourist appeal.
Fair value modelled at €200,310 from 6 comparable sales in the area. Asking €175,000 sits €25,310 (12.6%) below — the upside to fair value.
Asking €175,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €187,042 (€3,117/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €187,042, adjusted for condition and micro-location, gives a modelled fair value of €200,310 (€3,338/m²), a €25,310 (12.6%) gap versus the €175,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · caa1b5 | Subject | €175,000 | €2,917 | — | 71 | 71 |
| rua 16 de Janeiro, 1 | Active | €250,000 | €3,247 | 11.3% | 72 | 73 |
| rua Carlos Alberto Correia Ribeiro | Active | €295,000 | €3,430 | 17.6% | 65 | 73 |
| rua Josè António dos Reis Dàmaso, 47 | Active | €287,500 | €2,712 | 7.0% | 80 | 69 |
| largo de Carvoeiro | Active | €269,000 | €4,015 | 37.7% | 62 | 74 |
| Median comp | €278,250 | €3,339 | 14.5% | 69 | 73 |
Short-term vacation rental The property’s location near the Algarve coast makes it attractive for short-term vacation rentals, with a competitive gross yield of 6.3%. Given the fair value of €200,310 compared to the listing price of €175,000, the investment presents a viable opportunity for strong returns. Buy-and-hold Acquiring this apartment allows for a strategic buy-and-hold approach, benefiting from both rental income and potential value appreciation in a location with high tourist demand. The combination of a 12.6% gap to fair value and good neighborhood ratings supports the long-term investment thesis. Family rental The appealing proximity to the coast and sufficient amenities makes this property suitable for families seeking long-term rentals in a desirable area. With its current listing being 12.6% below fair value, there is potential for stable rental income and future appreciation. Not ideal for: Student housing The apartment's features and location do not cater to the needs of the student housing market, where higher turnover and specific amenities are generally required. Additionally, the neighborhood ratings suggest a preference for families and tourists over students. Not ideal for: Luxury market This property does not meet the criteria often sought in the luxury real estate market, which is characterized by high-end finishes and exclusive locations. The current condition rating of 68/100 indicates it may not be suitable for the luxury segment's demands. Not ideal for: Industrial investment An apartment in this area is not suitable for industrial investment, as the primary appeal lies in its residential and vacation rental potential. The metrics point to a focus on living conditions rather than industrial opportunities.
Economic volatility risk The economic stability score of 65/100 suggests potential fluctuations in market conditions that could affect rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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