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 villa of 286 m², built in 1980, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. The property boasts a generous outdoor entertainment area with a barbecue and multiple leisure spots, enhancing its appeal for social gatherings amidst the mature garden and poolside.
The valuation. The asking price of €1,200,000 is slightly below fair value at €1,276,786, making it a fair investment opportunity. This represents a difference of €76,786, or 6.0%. Buy-to-flip angle. A buy-to-flip strategy could capitalize on potential upgrades to kitchen and bathroom fixtures, aiming for a resale price that exceeds current market expectations. Buy-to-let angle. The projected gross yield of 1.7% reflects estimated rental income around €1,700/month, suitable for a short-term vacation rental in a popular tourist destination like Algarve.
Fair value modelled at €1,276,786 from 5 comparable sales in the area. Asking €1,200,000 sits €76,786 (6.0%) below — the upside to fair value.
Asking €1,200,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €1,056,941 (€3,696/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €1,056,941, adjusted for condition and micro-location, gives a modelled fair value of €1,276,786 (€4,464/m²), a €76,786 (6.0%) gap versus the €1,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 57fa1b | Subject | €1,200,000 | €4,196 | — | 73 | 75 |
| urbanização das Sesmarias, 106 | Active | €875,000 | €4,464 | 6.4% | 75 | 73 |
| Lagoa e Carvoeiro · 57f9c7 | Active | €899,000 | €4,241 | 1.1% | 80 | 71 |
| rua Areias dos Moinhos | Active | €1,265,000 | €6,487 | 54.6% | 78 | 71 |
| Lagoa e Carvoeiro · 911293 | Active | €110,000 | €1,158 | 72.4% | 74 | 64 |
| Median comp | €887,000 | €4,353 | 3.7% | 77 | 71 |
Short-term vacation rental The property presents a yield of 1.7%, which indicates moderate potential for generating income through short-term rentals. However, with a fair value gap of only 6.0%, this investment may not deliver exceptional returns in comparison to other opportunities in the region. Buy-and-hold Given the fair value assessment, the property is reasonably positioned for long-term appreciation in a desirable tourism market. However, the low yield of 1.7% suggests that it may not generate substantial cash flow to support a buy-and-hold strategy effectively. Family rental The villa's condition rating of 78/100 implies a solid property for family tenants, although the average neighbourhood score of 75/100 reflects some limitations in marketability. With a fair value listing, investing for family rental purposes may not yield significant advantages over time, making this a more cautious choice for long-term rental investors.
Economic Dependence Risk The economic stability score of 65/100 indicates a moderate risk of fluctuations in local economic conditions that could impact 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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