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.
5-bedroom, 6-bathroom villa of 528 m², built in 2026, energy rating A+. Located on rua João Bráz, 3, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a private sauna with garden views, and a professional-grade putting green, enhancing the exclusive outdoor resort-like experience.
The valuation. The asking price of €2,575,000 exceeds the fair value of €2,108,904 by €466,096, representing an 18.1% premium. This property is considered overpriced in the current market.
Fair value modelled at €2,108,904 from the area baseline, adjusted for condition and location. Asking €2,575,000 sits €466,096 (18.1%) above — overpriced versus fair value.
Asking €2,575,000 versus the rua João Bráz, 3 area baseline of €2,020,128 (€3,826/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 88 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 77/100 (Housing Market 80 · Amenities 75 · Economic 75 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua João Bráz, 3
Area baseline €2,020,128 + condition +€66,000 + location +€199,128 = modelled fair value of €2,108,904 (€3,994/m²), a €466,096 (18.1%) gap versus the €2,575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua João Bráz, 3 | Subject | €2,575,000 | €4,877 | — | 80 | 77 |
| São Gonçalo de Lagos · 49b92e | Active | €1,595,000 | €6,702 | 37.4% | 83 | 75 |
| rua José Lobo da Veiga, 152 | Active | €2,800,000 | €7,018 | 43.9% | 90 | 76 |
| rua da Ameijeira | Active | €750,000 | €2,820 | 42.2% | 71 | 73 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 21.2% | 80 | 73 |
| Median comp | €1,495,000 | €6,307 | 29.3% | 82 | 74 |
Short-term vacation rental This property is positioned in a popular Algarve tourist area; however, its pricing reveals an 18.1% gap above fair value, indicating it is overpriced for investors seeking attractive short-term rental returns. Additionally, with a current gross yield of 0%, the financials do not support a viable vacation rental strategy. Long-term rental The villa's appeal in a moderately strong real estate market is offset by its overvaluation, as it is priced 18.1% above its fair value. Without an established yield, the long-term rental strategy appears less favorable, making this investment less attractive overall. Buy-and-hold While the property is located in a vibrant neighborhood with a good quality rating, the 18.1% premium over fair value suggests that a buy-and-hold strategy would likely underperform. The current pricing coupled with a lack of yield diminishes the potential return on investment in the long run.
Economic Vulnerability A moderate economic stability score of 75/100 suggests potential for economic fluctuations that could impact rental income. Tenant Stability Risk While tenant stability is relatively high at 80/100, the presence of economic vulnerabilities may increase the risk of tenant turnover or vacancy.
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