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, 4-bathroom villa of 238 m², built in 1991, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This villa features a fully insulated garden office with air conditioning, ideal for remote work or creative projects, enhancing the functionality of the outdoor living space.
The valuation. The asking price of €1,595,000 is substantially above the fair value of €943,956, representing an overpricing of €651,044 (40.8%). This disparity suggests it is not a favorable investment as it fails to meet the valuation criteria.
Fair value modelled at €943,956 from the area baseline, adjusted for condition and location. Asking €1,595,000 sits €651,044 (40.8%) above — overpriced versus fair value.
Asking €1,595,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €831,096 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 83 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 70 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €831,096 + condition +€29,750 + location +€83,110 = modelled fair value of €943,956 (€3,966/m²), a €651,044 (40.8%) gap versus the €1,595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 49b92e | Subject | €1,595,000 | €6,702 | — | 83 | 75 |
| jardim das Calicas | Active | €1,595,000 | €5,145 | 23.2% | 83 | 72 |
| rua da Ameijeira | Active | €750,000 | €2,820 | 57.9% | 71 | 73 |
| rua João Bráz, 3 | Active | €2,575,000 | €4,877 | 27.2% | 80 | 77 |
| Bensafrim e Barão de São João · 956bdc | Active | €1,499,000 | €6,194 | 7.6% | 80 | 72 |
| Median comp | €1,547,000 | €5,011 | 25.2% | 80 | 73 |
Short-term vacation rental While short-term vacation rentals may capitalize on São Gonçalo de Lagos' tourism-driven economic stability, the property’s significant markup of 40.8% over its fair value poses too high of a risk to generate a satisfactory return. At a gross yield of only 1.9%, this investment is unlikely to cover operating costs effectively, making it a less lucrative choice for short-term rental strategies. Long-term rental Entering the long-term rental market with this villa is questionable given its price point of €1,595,000, which exceeds the estimated fair value by 40.8%. Such a premium translates into a dismal gross yield of 1.9%, which does not offer an appealing return for landlords in a generally stable but not exceptional neighborhood. Buy-and-hold Investing in this property as a buy-and-hold strategy is less than ideal, especially since it is priced 40.8% above its fair value of €943,956. The yield of 1.9% does not provide adequate compensation for the carrying costs associated with maintaining the asset over the long term, limiting its attractiveness for future appreciation in value.
Moderate economic reliance risk The economic stability score of 75 indicates a moderate reliance on local economic conditions, which may lead to fluctuations in rental income and tenant retention.
