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 house of 207 m², built in 1999, energy rating C. Located on parque do Moínho, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Investment Opportunity: The converted basement features two independent T1 apartments, presenting ideal potential for generating rental income while serving as a spacious family home.
The valuation. The asking price of €815,000 is €30,182 above the fair value of €784,818, indicating that the property is overpriced by approximately 3.7%. Buyers should approach this listing with caution regarding its inflated cost.
Fair value modelled at €784,818 from the area baseline, adjusted for condition and location. Asking €815,000 sits €30,182 (3.7%) above — overpriced versus fair value.
Asking €815,000 versus the parque do Moínho area baseline of €722,844 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 74 · Materials 75 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
parque do Moínho
Area baseline €722,844 + condition -€4,528 + location +€66,502 = modelled fair value of €784,818 (€3,791/m²), a €30,182 (3.7%) gap versus the €815,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| parque do Moínho | Subject | €815,000 | €3,937 | — | 74 | 73 |
| Luz · 6d54ca | Active | €1,495,000 | €3,020 | 23.3% | 80 | 73 |
| São Gonçalo de Lagos · ba574b | Active | €1,300,000 | €3,148 | 20.1% | 72 | 78 |
| São Gonçalo de Lagos · 956e96 | Active | €1,300,000 | €3,148 | 20.1% | 70 | 78 |
| São Gonçalo de Lagos · 6fb85c | Active | €1,300,000 | €3,148 | 20.1% | 73 | 69 |
| Median comp | €1,300,000 | €3,148 | 20.0% | 73 | 76 |
Short-term vacation rental The property’s location in a tourist-dense part of Algarve makes it less ideal for short-term vacation rentals, particularly given its valuation at €815,000, which is 3.7% above fair value. The high initial investment and low yield of 3.7% suggest that the market conditions do not favor this strategy, leading to potentially lower returns. Long-term rental Despite the appealing location for long-term rentals, the property’s gross yield of 3.7% indicates suboptimal income potential relative to the €815,000 listing price, which is notably overpriced by 3.7%. This diminishes its attractiveness for investors looking for reliable returns in a volatile market. Buy-and-hold While the neighbourhood benefits from seasonal tourism, the property’s condition score of 74/100 and its high price point suggest that the buy-and-hold strategy may not yield satisfactory appreciation over time. Furthermore, the limited economic diversity in the area raises concerns about long-term property performance against the €815,000 valuation, underscoring a potentially poor investment choice.
[Economic Vulnerability] The property's economic stability score of 65/100 indicates potential exposure to market fluctuations that could affect rental income and property value negatively.
