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.
2-bedroom, 2-bathroom apartment of 85 m², built in 1994, energy rating D. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment includes energy-efficient solar panels and is sold fully furnished with a modern urban style, enhancing both comfort and rental attractiveness.
The valuation. The asking price of €349,000 sits €22,181 (6.8%) above the fair value of €326,819, indicating that the property’s pricing is in line with its assessed worth. The valuation suggests a fair investment opportunity in the current market. Buy-to-flip angle. The strategy involves completing minor enhancements to take advantage of the high demand for well-renovated properties in Lagoa, aiming for a quick resale at a higher price point. This approach capitalizes on the region's tourist-driven economy for potential buyers. Buy-to-let angle. With a gross yield of 0%, the rental income strategy would focus on short-term vacation rentals targeting tourists drawn to the Algarve, potentially maximizing profitability despite the absence of immediate cash flow. Long-term rentals can also be considered as the neighborhood develops.
Fair value modelled at €326,819 from 6 comparable sales in the area. Asking €349,000 sits €22,181 (6.8%) above — overpriced versus fair value.
Asking €349,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €252,059 (€2,965/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 €252,059, adjusted for condition and micro-location, gives a modelled fair value of €326,819 (€3,845/m²), a €22,181 (6.8%) gap versus the €349,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 51cb8c | Subject | €349,000 | €4,106 | — | 88 | 62 |
| Lagoa e Carvoeiro · 133b61 | Active | €380,000 | €3,725 | 9.3% | 72 | 63 |
| Lagoa e Carvoeiro · 5b880d | Active | €360,000 | €4,138 | 0.8% | 82 | 74 |
| Lagoa e Carvoeiro · 0c0524 | Active | €344,900 | €3,964 | 3.4% | 72 | 72 |
| Lagoa e Carvoeiro · 6d5455 | Active | €360,000 | €3,673 | 10.5% | 75 | 71 |
| Median comp | €360,000 | €3,845 | 6.4% | 74 | 72 |
Long-term rental Although the apartment is located in a desirable tourist region, its zero gross yield indicates that long-term rental may not yield desirable returns. Moreover, with a fair value gap of only 6.8%, the investment is not priced attractively for this strategy. Short-term vacation rental The potential for short-term vacation rentals in the Algarve is significant; however, the property’s fair valuation and lack of yield suggest it may not perform optimally in this category. The neighbourhood score of 62/100 could limit its attractiveness to vacationers compared to other options in the area. Buy-and-hold While the property is situated in a popular location, its current listing price does not offer an advantageous basis for a buy-and-hold strategy due to the minimal gap to fair value. Investors may find that the lack of rental income further discourages long-term capital appreciation in this instance.
Tenant turnover risk High tenant turnover is probable given the Tenant stability score of 55/100, leading to increased vacancy rates and potential loss of rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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