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, 2-bathroom villa of 240 m², built in 1969, energy rating B. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa's prime location within a golf resort provides easy access to various amenities, including multiple swimming pools and 24-hour security, enhancing the overall lifestyle experience.
The valuation. The asking price of €575,000 sits €92,429 (13.8%) below the fair value of €667,429. This indicates that the property is underpriced in the current market. Buy-to-flip angle. The plan involves acquiring the villa, enhancing its appeal through strategic renovations, and subsequently reselling it at a premium, capitalizing on increased property values in the Lagoa e Carvoeiro area. Buy-to-let angle. With an estimated rental income of €1,725/month generating a gross yield of 3.6%, this villa supports a buy-to-let strategy targeting the lucrative short-term vacation rental market, benefiting from its prime Algarve location.
Fair value modelled at €667,429 from 6 comparable sales in the area. Asking €575,000 sits €92,429 (13.8%) below — the upside to fair value.
Asking €575,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €718,235 (€2,993/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 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 €718,235, adjusted for condition and micro-location, gives a modelled fair value of €667,429 (€2,781/m²), a €92,429 (13.8%) gap versus the €575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 2fcd7e | Subject | €575,000 | €2,396 | — | 68 | 72 |
| Lagoa e Carvoeiro · 1f35d7 | Active | €425,000 | €3,269 | 36.5% | — | 65 |
| rua Padre Antão S / N | Active | €325,000 | €1,693 | 29.3% | 65 | 73 |
| Estômbar e Parchal · f5e99e | Active | €450,000 | €2,500 | 4.3% | 82 | 64 |
| Lagoa e Carvoeiro · ee880a | Active | €580,000 | €2,762 | 15.3% | 75 | 69 |
| Median comp | €437,500 | €2,631 | 9.8% | 75 | 67 |
Short-term vacation rental The property is ideally situated in Algarve, a popular coastal tourist area with strong demand for short-term rentals, making it an appealing investment for vacation rentals. With its fair value indicating a 13.8% gap, this villa presents an opportunity to capture higher rental yields in a thriving tourism market. Buy-and-hold Investing in this villa for a buy-and-hold strategy benefits from its location in a growing tourist region where property values are expected to appreciate over time. The fair value suggests that the property, currently listed at €575,000, is a solid long-term investment while offering a reasonable gross yield of 3.6%. Value-add renovation With a condition rating of 64/100, there is potential for enhanced property value through a renovation strategy, allowing for increased rental income and overall appreciation. Given that the villa is listed below its fair value, strategic renovations could realize a greater ROI in a high-demand area like Lagoa e Carvoeiro. Not ideal for: Student housing The property is not suitable for student housing due to limited access to educational institutions, which could affect demand. Thus, this investment would best serve other rental markets rather than catering to the student demographic. Not ideal for: Luxury market This villa does not align with luxury market characteristics, as its condition and neighborhood ratings indicate a more affordable segment of the housing market. Investors targeting high-end clientele may find better opportunities elsewhere in the Algarve region.
Economic downturn risk A score of 65/100 indicates potential economic instability, which could affect rental income and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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