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.
4-bedroom, 2-bathroom house of 208 m², built in 2003. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property's enclosed sunroom and outdoor patio offer versatile spaces for relaxation and entertaining, enhancing its appeal despite the need for minor renovations.
The valuation. The asking price of €395,000 is significantly below the fair value of €1,005,299, representing a discount of €610,299 or 154.5%. This makes the property underpriced and an attractive investment opportunity.
Fair value modelled at €743,818 from the area baseline, adjusted for condition and location. Asking €395,000 sits €348,818 (88.3%) below — the upside to fair value.
Asking €395,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €726,336 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 (Condition 60 · Materials 65 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
São Gonçalo de Lagos, Lagos, Faro
Area baseline €726,336 + condition -€40,625 + location +€58,107 = modelled fair value of €743,818 (€3,576/m²), a €348,818 (88.3%) gap versus the €395,000 asking price.
Short-term vacation rental This property in São Gonçalo de Lagos is well positioned to capitalize on the booming tourism in the Algarve, presenting an attractive gross yield of 8.2%. Given the significant gap versus fair value at 154.5%, this investment stands to benefit from strong seasonal demand for vacation rentals. Long-term rental Investing in a long-term rental in this desirable neighborhood could yield consistent returns, as the housing market is buoyed by the area's tourism-driven economy. The property’s condition rating of 63/100 suggests it may require some updates, yet this still positions it favorably compared to its fair value. Buy-and-hold Given the substantial fair value of €1,005,299, this property represents a strong buy-and-hold investment in an area that is expected to appreciate over time. The 8.2% gross yield combined with the positive economic indicators in the Algarve makes this a compelling option for long-term financial growth.
Economic Vulnerability The economic stability score of 65/100 suggests potential volatility in market conditions that could affect long-term rental income.
