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, 1-bathroom apartment of 70 m², built in 1984. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: This ground-floor apartment includes a larger-than-average private terrace perfect for entertaining, and its location within Rocha Brava provides direct access to extensive leisure facilities and beautifully landscaped gardens.
The valuation. The asking price of €325,000 is slightly above the fair value of €305,842 by €19,158 (6.3%). This positions the property at a fair market level. Buy-to-flip angle. With strategic renovations, the property can appeal to vacation buyers, aiming for a quick resale at a higher price post-upgrade. Buy-to-let angle. The estimated rental income of €840/month translates to a gross yield of 3.1%, catering to long-term tenants in the high-demand Algarve market.
Fair value modelled at €305,842 from 6 comparable sales in the area. Asking €325,000 sits €19,158 (6.3%) above — overpriced versus fair value.
Asking €325,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €254,421 (€3,635/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €254,421, adjusted for condition and micro-location, gives a modelled fair value of €305,842 (€4,369/m²), a €19,158 (6.3%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · e554c1 | Subject | €325,000 | €4,643 | — | 80 | 72 |
| Lagoa e Carvoeiro · ba39ff | Active | €275,000 | €2,371 | 48.9% | 74 | 70 |
| Lagoa e Carvoeiro · 90d7a1 | Active | €435,000 | €3,063 | 34.0% | 75 | 74 |
| rua de Moçambique S / N | Active | €495,000 | €4,950 | 6.6% | 75 | 72 |
| Lagoa e Carvoeiro · 1e6002 | Active | €395,000 | €4,877 | 5.0% | 76 | 70 |
| Median comp | €415,000 | €3,970 | 14.5% | 75 | 71 |
Short-term vacation rental This property, positioned in a highly sought-after tourist area of Lagoa, can yield a modest gross return of 3.1%. With a fair value evaluation revealing a 6.3% gap, the listing price is reflective of the area's strong vacation rental demand but is ultimately priced fairly. Buy-and-hold Holding this property in a thriving location like Lagoa offers stable long-term appreciation potential, though the current yield of 3.1% suggests limited cash flow. Given the property is priced fairly, it serves as a reasonable long-term investment in a mixed local and expatriate community. Family rental While the apartment presents viable options for family tenants, the current yield of 3.1% indicates that the property may not maximize rental income potential. As it is fairly valued, the property can still attract families looking for stable housing in a desirable neighborhood without presenting any significant investment advantage. Not ideal for student housing Due to the family-centric and expatriate nature of the area, this property is not suited for the student rental market. Investing here may lead to unforeseen challenges in tenant stability and demand. Not ideal for luxury market The property does not align with the luxury sector, as evidenced by its condition rating of 79/100 and the neighborhood's average score of 72/100. As the listing does not represent a luxurious offering, it limits potential practices typical within the high-end market. Not ideal for industrial development The residential nature of Lagoa e Carvoeiro does not support industrial development potential for this property. Consequently, investing in this space for industrial purposes would be inconsistent with the local market dynamics and demand.
Economic volatility risk The property may face potential financial instability due to a moderate economic stability score of 65/100, which could impact long-term rental income and tenant retention. Likewise, the tenant stability score of 70/100 indicates a reasonable level of tenant turnover risk, potentially affecting consistent cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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