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, 3-bathroom house of 298 m², built in 2007, energy rating D. Located on estrada Sem Nome, 85, Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: This property features a versatile studio with a kitchenette and separate entrance, perfect for guests or rental income, alongside a Pebble Pools swimming pool and extensive outdoor leisure areas.
The valuation. The asking price of €1,195,000 sits significantly below the fair value of €1,542,181, creating an opportunity with a difference of €347,181 (29.1%). This property is thus considered underpriced. Buy-to-flip angle. The strategy for resale includes enhancing the property’s appeal through minor upgrades, targeting a profitable flip given the current market conditions in the Algarve region. This could yield a lucrative return on investment. Buy-to-let angle. With an estimated gross yield of 3% (~€2,988/month), the rental income strategy leverages the area’s strong tourist demand, ensuring a steady cash flow through either short-term vacation rentals or long-term leasing options.
Fair value modelled at €1,542,181 from the area baseline, adjusted for condition and location. Asking €1,195,000 sits €347,181 (29.1%) below — the upside to fair value.
Asking €1,195,000 versus the estrada Sem Nome, 85 area baseline of €1,387,488 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
estrada Sem Nome, 85
Area baseline €1,387,488 + condition +€32,594 + location +€122,099 = modelled fair value of €1,542,181 (€5,175/m²), a €347,181 (29.1%) gap versus the €1,195,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada Sem Nome, 85 | Subject | €1,195,000 | €4,010 | — | 80 | 72 |
| Bensafrim e Barão de São João · 956ddd | Active | €1,195,000 | €4,010 | 0% | 80 | 63 |
| rua do Rossio | Active | €380,000 | €3,040 | 24.2% | 75 | 62 |
| Bensafrim e Barão de São João · f363bb | Active | €415,000 | €1,774 | 55.8% | 65 | 72 |
| Bensafrim e Barão de São João · 99f40d | Active | €310,000 | €1,422 | 64.5% | 42 | 65 |
| Median comp | €397,500 | €2,407 | 40.0% | 70 | 64 |
Short-term vacation rental This property is strategically positioned in Algarve, a region known for its robust tourist-driven economy and amenities, making it an excellent candidate for short-term vacation rentals. With a gap to fair value of 29.1%, the potential for increased rental income and occupancy rates is high. Long-term rental The 3-bed house in Bensafrim e Barão de São João offers a solid foundation for long-term rental opportunities, underpinned by a strong local economy and tenant demand. At a gross yield of 3%, this property is well-positioned to attract stable, quality tenants seeking the comforts of a desirable neighborhood. Buy-and-hold Investing in this property aligns with a buy-and-hold strategy given its advantageous location in a thriving tourist area and a fair value significantly above the listing price. The enduring appeal of the Algarve is likely to support property appreciation, making it a prudent long-term investment choice.
Potential Vacancy Risk: With both economic and tenant stability scores at 65/100, there is a heightened risk of vacancy as the tenant base may not be sufficiently stable, potentially leading to higher turnover rates and associated costs.
