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, 4-bathroom villa of 179 m², built in 1988, energy rating B. Located on rua do Escondidinho S / N, Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa includes a versatile 24 m² gym with an adjoining bathroom, enhancing options for fitness and leisure at home while maintaining modern aesthetics.
The valuation. The asking price of €875,000 sits significantly below the fair value of €1,247,381, representing a discrepancy of €372,381 or 29.9%. This indicates the property is underpriced in the current market. Buy-to-flip angle. The strategy for resale involves capitalizing on the property’s high-end contemporary renovation and desirable location in Algarve, targeting buyers attracted to the luxury market for potential quick turnover. Buy-to-let angle. A rental income strategy is viable, with a gross yield of 3% based on an estimated monthly income of €2,188, leveraging the area's appeal for long-term tenants and seasonal vacation rentals.
Fair value modelled at €1,247,381 from 6 comparable sales in the area. Asking €875,000 sits €372,381 (29.9%) below — the upside to fair value.
Asking €875,000 versus the rua do Escondidinho S / N area baseline of €1,097,361 (€6,131/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €1,097,361, adjusted for condition and micro-location, gives a modelled fair value of €1,247,381 (€6,969/m²), a €372,381 (29.9%) gap versus the €875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Escondidinho S / N | Subject | €875,000 | €4,888 | — | 87 | 65 |
| Lagoa e Carvoeiro · 6530a1 | Active | €1,990,000 | €9,171 | 87.6% | 90 | 72 |
| rua João Paulo II S / N | Active | €1,295,000 | €7,994 | 63.5% | 78 | 67 |
| rua da Palma S / N | Active | €3,499,000 | €9,306 | 90.4% | 75 | 64 |
| Lagoa e Carvoeiro · 483ae7 | Active | €945,000 | €5,943 | 21.6% | 76 | 73 |
| Median comp | €1,642,500 | €8,583 | 75.6% | 77 | 70 |
Long-term rental The property offers a 3% gross yield, making it a reasonable option for long-term rentals in a region where employment is driven by tourism. With a fair value of €1,247,381, this villa is subvalued at €875,000, providing an opportunity for rental income growth. Short-term vacation rental The 3-bedroom configuration in a tourist-friendly area of Lagoa e Carvoeiro positions this property as an attractive short-term vacation rental. Given that it is listed at €875,000—29.9% below its fair value—there’s significant room for profitability in short-term leases targeting holidaymakers. Buy-and-hold Investing in this property as a buy-and-hold strategy could yield positive returns due to its undervalued price relative to fair market value. As the area benefits from a robust tourism sector, holding this villa could lead to capital appreciation over time while earning consistent rental income. Not ideal for student housing The property does not suit student housing given the prevalent tourist-driven economy, which lacks the steady demand required for this segment. Consequently, it may not align with the expectations of student tenants seeking year-round accommodation. Not ideal for luxury market Targeting the luxury market is also not advisable due to the neighbourhood's overall rating of 65/100, indicating that the property may not meet high-end buyer expectations. The villa is better positioned within the tourism and expatriate segments than the luxury sector.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk of market fluctuations adversely affecting property values and rental income.
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