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 townhouse of 140 m², built in 1993, energy rating D. Located on urbanização das Sesmarias, 1, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This townhouse boasts a spacious rooftop terrace offering breathtaking panoramic views of the Algarve landscape and the Monchique mountains, ideal for outdoor gatherings or relaxation.
The valuation. The asking price of €412,000 sits €28,551 (6.5%) below the fair value of €440,551, reflecting a fair valuation of the property. This indicates that the pricing is aligned closely with the market value expectations. Buy-to-flip angle. A potential resale strategy could involve upgrading the outdated fittings to tap into the tourist market, aiming for a favorable return after enhancements. The goal would be to reposition the townhouse for a quick sale, potentially capitalizing on the vibrant local real estate demand. Buy-to-let angle. The rental income strategy could focus on short-term vacation rentals, given the estimated gross yield of 5%, or about €1,717 per month. This reflects the property’s strong appeal in the tourist-heavy area of Lagoa e Carvoeiro.
Fair value modelled at €440,551 from 6 comparable sales in the area. Asking €412,000 sits €28,551 (6.5%) below — the upside to fair value.
Asking €412,000 versus the urbanização das Sesmarias, 1 area baseline of €414,973 (€2,964/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €414,973, adjusted for condition and micro-location, gives a modelled fair value of €440,551 (€3,147/m²), a €28,551 (6.5%) gap versus the €412,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização das Sesmarias, 1 | Subject | €412,000 | €2,943 | — | 58 | 71 |
| rua do Pestana Golf Resort S / N | Active | €545,000 | €3,494 | 18.7% | 74 | 70 |
| urbanização da Grandlinha, 11 | Active | €518,000 | €3,866 | 31.4% | 74 | 76 |
| urbanização Bela Vista | Active | €775,000 | €3,588 | 21.9% | 72 | 72 |
| urbanização da Hortinha, 5 | Active | €990,000 | €2,215 | 24.7% | 66 | 64 |
| Median comp | €660,000 | €3,541 | 20.3% | 73 | 71 |
Short-term vacation rental The property presents a solid investment opportunity with a gross yield of 5%, which is attractive for short-term vacation rentals in the sought-after Algarve region. However, its fair value just slightly exceeds the listing price by 6.5%, indicating that the property is fairly priced in a competitive market. Buy-and-hold As a buy-and-hold investment, the townhouse shows potential for stable returns due to favorable neighborhood conditions and proximity to major tourist attractions. The yield of 5% aligns well with expectations for long-term appreciation, suggesting that the property is priced appropriately given its current condition and fair value assessment. Family rental This townhouse could effectively serve as a family rental, supported by the neighborhood's 71/100 rating for tenant quality and amenities. While it fits well within the rental market, the property’s fair valuation means investors should be mindful of the pricing as it stands at 6.5% below its assessed fair value.
Tenant turnover risk A tenant stability score of 67/100 indicates a potential for higher tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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