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.
6-bedroom, 5-bathroom villa of 448 m², built in 1968, energy rating C. Located on rua de Areias dos Moinhos, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. This property features extensive panoramic sea views that encompass Ponta da Piedade in Lagos and Sagres, complemented by a renovated tennis court and a heated saltwater pool.
The valuation. The asking price of €1,950,000 sits €208,171 (9.6%) below the fair value of €2,158,171, indicating that this property is subpriced and presents an attractive entry point for investors. Buy-to-flip angle. The property can be targeted for a short-term vacation rental strategy, capitalizing on the Algarve's tourism-driven economy to maximize resale potential post-renovation. Buy-to-let angle. With the expected rental income levels currently projected at 0%, there is significant room for value-add renovations aimed at achieving favorable cash flow in a desirable tourist hotspot.
Fair value modelled at €2,158,171 from 6 comparable sales in the area. Asking €1,950,000 sits €208,171 (9.6%) below — the upside to fair value.
Asking €1,950,000 versus the rua de Areias dos Moinhos area baseline of €1,713,271 (€3,824/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,713,271, adjusted for condition and micro-location, gives a modelled fair value of €2,158,171 (€4,817/m²), a €208,171 (9.6%) gap versus the €1,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Areias dos Moinhos | Subject | €1,950,000 | €4,353 | — | 80 | 73 |
| estrada de Benagil | Active | €2,200,000 | €6,286 | 44.4% | 80 | 64 |
| Lagoa e Carvoeiro · cc9a3d | Active | €2,180,000 | €5,561 | 27.8% | 80 | 74 |
| jardim & Sauna | Active | €998,000 | €4,073 | 6.4% | 82 | 67 |
| Lagoa e Carvoeiro · 49b8f5 | Active | €5,000,000 | €13,587 | 212.2% | 75 | 73 |
| Median comp | €2,190,000 | €5,924 | 36.1% | 80 | 70 |
Short-term vacation rental This villa in Lagoa e Carvoeiro, listed at €1,950,000, is a promising candidate for short-term vacation rentals, capitalizing on the region's strong tourism-driven economy. With a fair value assessment indicating it's 9.6% below market expectations, the property presents a strategic opportunity to generate rental income in a desirable location. Buy-and-hold Given its favorable position in the Algarve, this 6-bed villa represents a solid buy-and-hold investment strategy, reflective of its 85/100 condition score. The property, being priced at €1,950,000 while fair value stands at €2,158,171, offers long-term appreciation potential in a growing tourism market. Value-add renovation With a sound condition score of 85/100 and a significant gap to its fair value, this villa is an ideal candidate for a value-add renovation strategy, allowing investors to enhance its appeal and market position. The €1,950,000 listing price suggests that there is room to improve the asset while still being under the fair value benchmark, promising potential returns upon completion of upgrades.
Economic vulnerability The property has an economic stability score of 65/100, indicating potential exposure to market fluctuations that could negatively impact rental income and property value.
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