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.
4-bedroom, 4-bathroom house of 286 m², energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes infrastructure ready for pool installation and features mature fruit trees, enhancing its outdoor appeal in a prime Algarve location.
The valuation. The asking price of €847,270 is positioned 5.9% below the fair value of €899,983, indicating a favorable alignment with market expectations for this property.
Fair value modelled at €899,983 from 6 comparable sales in the area. Asking €847,270 sits €52,713 (5.9%) below — the upside to fair value.
Asking €847,270 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €817,016 (€2,857/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €817,016, adjusted for condition and micro-location, gives a modelled fair value of €899,983 (€3,147/m²), a €52,713 (5.9%) gap versus the €847,270 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 57fad5 | Subject | €847,270 | €2,962 | — | 70 | 70 |
| Lagoa e Carvoeiro · 828f9c | Active | €580,000 | €2,762 | 6.8% | 72 | 70 |
| Lagoa e Carvoeiro · ee880a | Active | €580,000 | €2,762 | 6.8% | 75 | 69 |
| Lagoa e Carvoeiro · 8751a2 | Active | €1,300,000 | €4,235 | 42.9% | 76 | 73 |
| rua do Pestana Golf Resort S / N | Active | €545,000 | €3,494 | 17.9% | 74 | 70 |
| Median comp | €580,000 | €3,128 | 5.6% | 75 | 70 |
Long-term rental This property offers a gross yield of 4.7%, which is competitive in the Lagoa e Carvoeiro area, signifying a stable income potential for long-term tenants. However, with a fair value slightly higher than the listing price, investors should proceed with caution, ensuring the overall investment aligns with their financial expectations. Short-term vacation rental Given that Lagoa is a well-known tourist area, this property could perform adequately as a short-term vacation rental, appealing to visitors seeking comfort and space. Nevertheless, the property's slightly higher fair value suggests that potential returns may not be as robust as desired in a competitive short-term rental market. Buy-and-hold With a condition rating of 73/100 and a 4-bed layout, this property has the potential for appreciation in an area sustained by tourism, which typically supports consistent demand. Yet, the gap between the listing and fair value indicates that while it may not be an immediate risk, holding onto this property requires a strategic outlook for future market shifts. Not ideal for student housing The property’s profile does not cater to the typical needs of student housing, which often demands smaller, more affordable spaces. Additionally, the rental income potential in this sector might not justify the investment given the area's focus on tourism rather than a stable student population. Not ideal for luxury market This property does not align with luxury market standards, as its condition and neighborhood ratings do not support the high-end demographic expectations. Consequently, targeting high-net-worth individuals may yield disappointing results and limit appeal.
Tenant default risk Given a tenant stability score of 70/100, there remains a 30% chance of potential tenant turnover or default which could impact rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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