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, 2-bathroom house of 82 m², built in 1993, energy rating F. Located on caminho do Lago, 8, Monte Gordo parish, Vila Real de Santo António municipality, Faro district. This property features a cozy fireplace in the open-plan living area and a private terrace with forest views, perfect for tranquil outdoor dining.
The valuation. The asking price of €320,000 sits significantly above the fair value of €149,245, translating to an overpricing of €170,755 or 53.4%. This discrepancy indicates the property is not a financially viable option for investment.
Fair value modelled at €149,245 from the area baseline, adjusted for condition and location. Asking €320,000 sits €170,755 (53.4%) above — overpriced versus fair value.
Asking €320,000 versus the caminho do Lago, 8 area baseline of €140,794 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 60/100 (Housing Market 60 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
caminho do Lago, 8
Area baseline €140,794 + condition +€2,819 + location +€5,632 = modelled fair value of €149,245 (€1,820/m²), a €170,755 (53.4%) gap versus the €320,000 asking price.
Short-term vacation rental The property’s current listing price of €320,000 represents a significant premium over its fair value of €149,245, indicating it is overpriced for the short-term vacation rental market. With a gross yield of 6.4%, the potential returns do not justify the inflated asking price in a region where competition from similar listings is likely high. Buy-and-hold At €320,000, the property does not align with an effective buy-and-hold strategy given its valuation gap of 53.4% above fair value, signaling an overpriced investment. The limited yield of 6.4% compounded by neighborhood ratings suggests potential risks in capital appreciation and cash flow sustainability over time. Family rental With a fair value of €149,245, the property is overpriced at €320,000, which may deter potential tenants looking for affordable family rental options in the Monte Gordo area. The average condition rating of 77/100 does not compensate for the high price, potentially limiting tenant interest and rental income stability.
Economic Vulnerability The economic stability score of 55 suggests potential volatility, which could impact rental income and reduce tenant retention rates.
