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.
2-bedroom, 3-bathroom house of 147 m², built in 2009, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This duplex villa offers direct proximity to the stunning Porto de Mós Beach, and its expansive rooftop terrace is perfect for outdoor dining with unobstructed sea views.
The valuation. The asking price of €775,000 exceeds the fair value of €578,925 by €196,075 (25.3%). This property is considered overpriced based on current market conditions and valuation metrics.
Fair value modelled at €578,925 from the area baseline, adjusted for condition and location. Asking €775,000 sits €196,075 (25.3%) above — overpriced versus fair value.
Asking €775,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €513,324 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 90 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €513,324 + condition +€18,375 + location +€47,226 = modelled fair value of €578,925 (€3,938/m²), a €196,075 (25.3%) gap versus the €775,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 1e61ce | Subject | €775,000 | €5,272 | — | 80 | 73 |
| rua Doutor Faria e Silva S / N | Active | €550,000 | €5,612 | 6.5% | 74 | 73 |
| rua Jacques de Oliveira Neves | Active | €825,000 | €4,609 | 12.6% | 73 | 75 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 0.8% | 74 | 74 |
| São Gonçalo de Lagos · 4bbf3a | Active | €999,950 | €3,876 | 26.5% | 78 | 65 |
| Median comp | €687,500 | €4,963 | 5.9% | 74 | 74 |
Short-term vacation rental This property is overpriced, with a significant gap of 25.3% from the fair value, which could limit profitability in the competitive short-term rental market of the Algarve. Additionally, with a low gross yield of 2.5%, this investment may not meet the returns expected from short-term vacation rentals in high-demand areas. Buy-and-hold The buy-and-hold strategy is not advisable for this overpriced property due to its fair value being significantly lower than the listing price. With a gross yield of only 2.5%, long-term capital appreciation may not justify the initial investment in an already high-priced asset. Family rental While the neighborhood has safety and amenities, this property’s price point makes it an unattractive option for family rental purposes given its 25.3% discrepancy from fair value. The resultant low yield further diminishes its appeal, making it a less-than-ideal choice for family tenants looking for quality housing at a reasonable price.
Economic Impact Risk A moderate economic stability score of 65/100 may indicate potential fluctuations in rental demand, impacting revenue predictability for the property.
