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, 2-bathroom apartment of 90 m² on the 2nd floor, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This apartment features a private entrance and a spacious lounge that enjoys stunning sea views, enhancing its appeal for those seeking tranquility close to the beach.
The valuation. The asking price of €440,000 is substantially above the fair value of €342,478, indicating an overvaluation of €97,522, which is 28.5% higher than the fair market price. Buy-to-flip angle. A buy-to-flip strategy may not be viable here given the current asking price significantly exceeds fair value, suggesting minimal potential for profit upon resale. Buy-to-let angle. The estimated gross yield of 2.7% (~€990/month) signals limited attractiveness for rental income, particularly given the property’s current condition rating of 0/100, which may deter potential tenants.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · ec191d | Subject | €440,000 | €4,889 | — | — | 73 |
| Lagoa e Carvoeiro · 4b9681 | Active | €430,000 | €3,805 | 22.2% | 75 | 74 |
| Lagoa e Carvoeiro · 38c66b | Active | €475,000 | €3,862 | 21.0% | 72 | 78 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 51.5% | 74 | 70 |
| Lagoa e Carvoeiro · 875000 | Active | €288,000 | €5,333 | 9.1% | 65 | 71 |
| Median comp | €359,000 | €3,834 | 21.6% | 73 | 73 |
Short-term vacation rental The 2-bed apartment in Lagoa is overpriced by 28.5%, limiting potential returns for short-term rentals, which typically thrive in tourist-heavy areas. With a low yield of 2.7% gross, the investment does not offer optimal returns despite the location's popularity. Buy-and-hold Given its significant gap from fair value and current demand in the Algarve region, the property is not positioned well for a buy-and-hold strategy. With a neighborhood rating of 73, while appealing, it is overshadowed by the property's inflated price, making long-term appreciation unlikely. Long-term rental The overpriced status of this Lagoa apartment diminishes its viability for long-term rental strategies, despite the appeal of the location. Tenant quality may be high, yet the 2.7% yield does not justify investing in an asset priced above its fair value, posing risks to cash flow stability.
Economic downturn risk A modest economic stability score of 70/100 indicates potential challenges that may affect long-term rental income, particularly if tenant stability at 65/100 signals frequent turnover or vacancies.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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