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, 5-bathroom house of 285 m², built in 2009, energy rating B. Located on rua Frederico Rato, São Gonçalo de Lagos parish, Lagos municipality, Faro district. The property features a stunning infinity pool with a waterfall, complemented by a private paved road surrounded by well-kept gardens and impressive trees, enhancing its luxurious ambiance.
The valuation. The asking price of €1,850,000 is significantly above fair value, which is pegged at €724,930, making it overpriced by €1,125,070 (60.8%). This discrepancy suggests an unrealistic investment expectation. Buy-to-flip angle. Given the property’s condition rating of 0/100, a wholesale strategy focusing on significant renovations could attract buyers, but the high purchase price presents a challenge for profitability. Buy-to-let angle. At a gross yield of 1.8%, the estimated rental income of €2,775/month indicates limited cash flow potential, making long-term rental less appealing in comparison to potential holiday rental options in this tourist-friendly area.
Short-term vacation rental The property's asking price of €1,850,000, significantly above its fair value of €724,930, makes it an unfeasible investment for a short-term vacation rental strategy, especially with a low yield of 1.8%. Despite the attractive location in a tourist-friendly area, the excessive pricing poses a high risk for potential returns. Buy-and-hold The buy-and-hold strategy is not advisable for this property due to its valuation at €1,850,000, which is 60.8% over the fair value of €724,930. With a yield of only 1.8% and a condition rating of 0/100, the long-term holding potential is severely compromised by the inflated price. Long-term rental Given the current listing price of €1,850,000 compared to the fair value of €724,930, pursuing a long-term rental strategy seems illogical, as the property is significantly overpriced. The yield of just 1.8% further highlights the risks involved, making it an unattractive option for steady rental income.
Economic Vulnerability Given an economic stability score of 60/100, there is a risk of economic downturns negatively impacting property value and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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