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 townhouse of 160 m², built in 2003, energy rating B. Located on rua de Areias dos Moinhos, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This townhouse includes a private roof terrace for panoramic sea views and a wood-burning stove for cozy ambience during cooler months.
The valuation. The asking price of €625,000 is significantly below the fair value of €967,337, making this property subpriced by €342,337 (35.4%). Such a valuation positions it favorably in the current real estate climate.
Fair value modelled at €967,337 from 6 comparable sales in the area. Asking €625,000 sits €342,337 (35.4%) below — the upside to fair value.
Asking €625,000 versus the rua de Areias dos Moinhos area baseline of €830,631 (€5,191/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting 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 €830,631, adjusted for condition and micro-location, gives a modelled fair value of €967,337 (€6,046/m²), a €342,337 (35.4%) gap versus the €625,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Areias dos Moinhos | Subject | €625,000 | €3,906 | — | 78 | 70 |
| Lagoa e Carvoeiro · f35ec8 | Active | €570,000 | €4,071 | 4.2% | 80 | 74 |
| Lagoa e Carvoeiro · f14e3f | Active | €1,490,000 | €4,038 | 3.4% | 82 | 65 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 90.4% | 80 | 73 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 90.4% | 82 | 80 |
| Median comp | €974,500 | €5,755 | 47.3% | 81 | 74 |
Short-term vacation rental The townhouse in Lagoa e Carvoeiro, with a gap of 35.4% versus its fair value, offers significant potential for strong short-term vacation rental returns. Given the property’s appealing condition and location in a popular tourist area, it is well-positioned to attract seasonal visitors seeking premium experiences. Long-term rental With a gross yield of 3.3% and an overall property condition score of 81/100, this townhouse stands as a solid option for long-term rentals in a desirable neighborhood. The property’s fair value significantly exceeds the listing price, ensuring an attractive investment relative to cash flow potential. Buy-and-hold This investment in a subvalorizada townhouse in a sought-after tourist area makes it an appealing buy-and-hold strategy, as the property is poised for long-term appreciation. The 35.4% gap from fair value illustrates a robust upside potential, making it a strategic addition to a real estate portfolio.
Economic Vulnerability The economic stability score of 60/100 indicates a significant potential for economic downturns that could affect tenant demand 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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