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.
6-bedroom, 7-bathroom house of 300 m², built in 2016, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. The house features a rooftop terrace perfect for outdoor entertaining, offering unparalleled panoramic views of Lagos' historic walls and coastline, enhancing its appeal as a local accommodation.
The valuation. The asking price of €1,100,000 sits €57,104 (5.2%) below the fair value of €1,157,104, indicating it is subvalued. This pricing presents a compelling opportunity for prospective buyers. Buy-to-flip angle. Given the high-quality finishes and location in a desirable tourist area, a buy-to-flip strategy would focus on minor cosmetic updates to maximize the resale value quickly. The aim would be to capitalize on the property’s current price advantage. Buy-to-let angle. The property offers an estimated gross yield of 3.1%, with rental income around €2,842 per month, which caters well to both short-term vacation rentals and long-term family rentals. This consistent cash flow can enhance return on investment significantly.
Fair value modelled at €1,157,104 from the area baseline, adjusted for condition and location. Asking €1,100,000 sits €57,104 (5.2%) below — the upside to fair value.
Asking €1,100,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,047,600 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €1,047,600 + condition +€13,125 + location +€96,379 = modelled fair value of €1,157,104 (€3,857/m²), a €57,104 (5.2%) gap versus the €1,100,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 6fbc10 | Subject | €1,100,000 | €3,667 | — | 75 | 73 |
| parque do Moínho | Active | €815,000 | €3,937 | 7.4% | 74 | 73 |
| São Gonçalo de Lagos · 6fbb7d | Active | €980,000 | €3,920 | 6.9% | 70 | 74 |
| rua do Cerro das Mós | Active | €965,000 | €4,662 | 27.1% | 78 | 70 |
| avenida Atlântico | Active | €5,200,000 | €8,754 | 138.8% | — | 69 |
| Median comp | €972,500 | €4,300 | 17.3% | 74 | 72 |
Short-term vacation rental The property’s location in a tourist area of the Algarve makes it a strong candidate for short-term vacation rentals, allowing for potentially high occupancy rates during peak seasons. With a fair value gap of 5.2%, it is attractively priced to capitalize on the rising demand in the local tourism market. Buy-and-hold This investment strategy is supported by the property’s favorable valuation and solid neighborhood ratings, making it a viable option for long-term appreciation. The gross yield of 3.1% indicates steady cash flow potential while benefiting from the ongoing development in the area. Family rental Given its size and condition, this property is suitable for families looking for spacious accommodations, particularly in a region famous for its amenities and quality of life. The current neighborhood score of 73 suggests a community that can attract families, enhancing demand in the rental market.
Tenant turnover risk The tenant stability score of 65/100 indicates a potential for higher tenant turnover, which could lead to increased vacancy rates and associated costs.
