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 385 m², built in 1992, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This villa boasts a traditional bread oven and a barbecue area, enhancing outdoor cooking and entertaining possibilities in the beautifully landscaped gardens.
The valuation. The asking price of €960,000 is below the fair value of €1,131,252, indicating a potential opportunity, with the property being underpriced by €171,252 (15.1%). Buy-to-flip angle. A resale strategy can capitalize on the villa’s premium finishes and desirable location, aiming for a significant profit margin upon selling in the thriving Lagoa e Carvoeiro market. Buy-to-let angle. Considering the property’s appeal as a short-term vacation rental in a popular tourist region, it can attract high occupancy rates, though the initial gross yield is currently 0%.
Fair value modelled at €1,163,142 from 5 comparable sales in the area. Asking €960,000 sits €203,142 (17.5%) below — the upside to fair value.
Asking €960,000 versus the estrada da Caramujeira, 1 area baseline of €905,975 (€2,353/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €905,975, adjusted for condition and micro-location, gives a modelled fair value of €1,163,142 (€3,021/m²), a €203,142 (17.5%) gap versus the €960,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada da Caramujeira, 1 | Subject | €960,000 | €2,494 | — | 74 | 70 |
| Lagoa e Carvoeiro · 51cb63 | Active | €1,050,000 | €3,323 | 33.3% | 74 | 70 |
| rua Porches Velho, 142 | Active | €1,000,000 | €3,012 | 20.8% | 75 | 70 |
| Lagoa e Carvoeiro · 76aaeb | Active | €1,000,000 | €3,021 | 21.2% | 70 | 72 |
| Lagoa e Carvoeiro · c17977 | Active | €699,000 | €3,513 | 40.9% | 80 | 68 |
| Median comp | €1,000,000 | €3,172 | 27.2% | 75 | 70 |
Short-term vacation rental This property in Lagoa e Carvoeiro presents an appealing opportunity for short-term vacation rental, given its strategic location in a popular tourist region of Algarve, which typically enhances rental demand. The strong local tourism supports stable occupancy rates, offsetting the property’s current yield of 0% and suggesting potential for revenue generation in the vacation rental market. Long-term rental Although the current yield is 0%, the property’s fair value indicates it is priced attractively for a long-term rental investment, particularly due to its desirable location amidst stable local employment and amenities. Furthermore, with a condition rating of 77/100, it presents an appealing option for tenants looking for quality housing in a sought-after area. Buy-and-hold Investing in this property as a buy-and-hold strategy aligns well with the valuation gap of 15.1%, allowing for future appreciation in a vibrant neighborhood driven by tourism and local economic stability. The property’s fair value suggests substantial potential for long-term capital growth, making it a sound addition to any investment portfolio focused on stability in a thriving market.
Economic volatility risk The economic stability score of 65/100 indicates a moderate risk of economic fluctuations, which could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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