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.
1-bedroom, 1-bathroom country_house of 71 m², energy rating C. Located on rua do Poço, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This property includes a private outdoor patio with an annex, enhancing its appeal for outdoor living and entertainment. Additional: It offers a 14m² attic for versatile storage solutions.
The valuation. The asking price of €319,000 exceeds the fair value of €271,552 by €47,448 (14.9%). Thus, it is considered overpriced. Buy-to-flip angle. A resale strategy could target a premium in the thriving Algarve market, relying on property upgrades to enhance appeal for potential buyers. Buy-to-let angle. The rental income strategy would focus on short-term vacation rentals, aiming for an estimated gross yield of 3.7% with monthly income around €984, leveraging the area’s tourist influx.
Fair value modelled at €271,552 from the area baseline, adjusted for condition and location. Asking €319,000 sits €47,448 (14.9%) above — overpriced versus fair value.
Asking €319,000 versus the rua do Poço area baseline of €278,675 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua do Poço
Area baseline €278,675 + condition +€5,769 + location +€17,851 = modelled fair value of €271,552 (€3,825/m²), a €47,448 (14.9%) gap versus the €319,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Poço | Subject | €319,000 | €4,493 | — | 75 | 68 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 18.3% | 74 | 74 |
| São Gonçalo de Lagos · ba3e34 | Active | €410,000 | €5,256 | 17.0% | 80 | 78 |
| São Gonçalo de Lagos · 956cba | Active | €400,000 | €3,922 | 12.7% | 75 | 76 |
| São Gonçalo de Lagos · 261f51 | Active | €399,500 | €5,790 | 28.9% | 75 | 71 |
| Median comp | €399,750 | €5,287 | 17.7% | 75 | 75 |
Short-term vacation rental The property is currently overpriced by 14.9%, making it challenging to achieve optimal returns in the competitive vacation rental market of Algarve. With a gross yield of 3.7% and a neighborhood rating of 68/100, this investment lacks the strong demand needed for sustainable short-term rental income. Buy-and-hold Given the property is priced at €319,000—a significant markup over the fair value of €271,552—future appreciation potential appears limited. The current condition rating of 80/100 suggests moderate quality but does not compensate for the price premium, pointing to possible long-term value erosion. Family rental At a €319,000 listing price, this property falls short as a family rental investment, particularly considering the market is currently overpriced in relation to its fair value. The 3.7% gross yield does not align with the expectations families have for rental affordability and value, further complicating its attractiveness in the long-term rental space.
Economic Dependence Risk: With an economic stability score of 65/100, there's a substantial risk that potential economic downturns could negatively impact tenant stability, also at 65/100, leading to increased vacancies or lower rental income. Consider how these scores could influence the property's long-term cash flow and overall investment value.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
