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.
1-bedroom, 3-bathroom house of 227 m², energy rating G. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes an approved PIP for expansion, enabling the possibility to add another floor and capture stunning sea views in a prime Algarve location.
The valuation. The asking price of €1,999,000 is significantly above the fair value of €1,429,187, representing an excess of €569,813, or 39.9%. This indicates that the property is overpriced. Buy-to-flip angle. With significant renovation needs, the buy-to-flip strategy focuses on increasing property value through upgrades, targeting a resale after improvements in the high-demand Algarve area. Buy-to-let angle. A buy-to-let strategy is less attractive, given the 0% gross yield, but a short-term vacation rental could potentially generate income, capitalizing on the Algarve's seasonal tourism.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · e54fb5 | Subject | €1,999,000 | €8,806 | — | — | 72 |
| Lagoa e Carvoeiro · 2cdd01 | Active | €1,500,000 | €6,849 | 22.2% | — | 74 |
| Lagoa e Carvoeiro · 57fdad | Active | €296,500 | €4,861 | 44.8% | 70 | 73 |
| Lagoa e Carvoeiro · 583369 | Active | €1,790,000 | €8,027 | 8.8% | 68 | — |
| Lagoa e Carvoeiro · 2cdf44 | Active | €1,895,000 | €8,498 | 3.5% | 62 | 76 |
| Median comp | €1,645,000 | €7,438 | 15.5% | 68 | 74 |
Short-term vacation rental The property is overpriced by 39.9% relative to its fair value, which raises concerns about its viability as a short-term vacation rental. With a 0% gross yield and a condition score of 0/100, this investment does not justify the current listing price. Buy-and-hold Given the property’s 39.9% overpricing and a 0% gross yield, holding onto this investment in hopes of future appreciation seems unrealistic. The condition score of 0/100 and the seasonal economic background of the area compound the issue, making it a riskier buy-and-hold strategy. Family rental This property is priced 39.9% above fair value, making it less attractive as a family rental investment despite the overall demand in Lagoa e Carvoeiro. The lack of any yield combined with a poor condition score suggests that potential rental income may not sufficiently cover the costs associated with this property.
Economic Dependency Risk The economic stability score of 65 indicates a moderate risk associated with potential changes in local economic conditions that could affect tenant retention and 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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