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, 0-bathroom house of 625 m², built in 2004, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes 18 self-contained units designed for tourist exploitation and benefits from substantial outdoor areas for leisure, enhancing its investment appeal.
The valuation. The asking price of €1,000,000 sits significantly below the fair value of €1,949,755, making it an attractive investment opportunity at €949,755 (95.0%) underpriced.
Fair value modelled at €1,949,755 from the area baseline, adjusted for condition and location. Asking €1,000,000 sits €949,755 (95.0%) below — the upside to fair value.
Asking €1,000,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €2,440,625 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 32/100 (Condition 28 · Materials 35 · Room dimensions 40). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €2,440,625 + condition -€424,805 + location +€192,060 = modelled fair value of €1,949,755 (€3,120/m²), a €949,755 (95.0%) gap versus the €1,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · bf284d | Subject | €1,000,000 | €1,600 | — | 28 | 72 |
| rua Joaquim Victor Correia Valarinho | Active | €190,000 | €3,167 | 97.9% | 18 | 72 |
| São Gonçalo de Lagos · 4bc1de | Active | €395,000 | €1,899 | 18.7% | 60 | 70 |
| São Gonçalo de Lagos · 956b46 | Active | €370,000 | €1,682 | 5.1% | — | 66 |
| rua da Bela Vista | Active | €420,000 | €3,925 | 145.3% | 70 | 78 |
| Median comp | €382,500 | €2,533 | 58.3% | 60 | 71 |
Short-term vacation rental With the property priced at €1,000,000 while the fair value is €1,949,755, the potential for a significant appreciation in investment is clear, indicating strong short-term rental income possibilities due to high tourist demand. Although the current gross yield is 0%, the substantial gap from fair value suggests that this property can attract premium vacation rental rates in the popular Algarve region. Long-term rental Positioned within a tourist-driven market, this property could be an excellent candidate for long-term rental opportunities, especially considering its fair value being nearly double the listing. The area's safety and attraction to residents looking for a quality lifestyle further solidify the potential for reliable long-term rental returns. Family rental The family rental market could benefit from this property as it offers ample space and is located in a neighbourhood rated 72/100, conducive to family living, despite its current condition score of 32/100. With local amenities and the reputation of the Algarve attracting diverse demographics, this property presents an opportunity for families seeking residency in a safe environment, aligning with the value rebounds expected in the area.
Economic Vulnerability The property's economic stability score of 55/100 indicates a risk of declining market conditions that could impact rental demand or property value.
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