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, 5-bathroom villa of 190 m², built in 2010, energy rating C. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: This villa includes a summer kitchen ideal for outdoor entertaining and is within close proximity to the prestigious Espiche Golf Club, enhancing its leisure appeal.
The valuation. The asking price of €1,750,000 is significantly above the fair value of €947,314, representing an overvaluation of €802,686 or 45.9%. This property is considered overpriced and may not offer a sound investment opportunity.
Fair value modelled at €947,314 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €802,686 (45.9%) above — overpriced versus fair value.
Asking €1,750,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €884,640 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 82 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Bensafrim e Barão de São João, Lagos, Faro
Area baseline €884,640 + condition +€23,750 + location +€38,924 = modelled fair value of €947,314 (€4,986/m²), a €802,686 (45.9%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Bensafrim e Barão de São João · 9568c7 | Subject | €1,750,000 | €9,211 | — | 82 | 61 |
| Bensafrim e Barão de São João · 25f476 | Active | €1,750,000 | €9,211 | 0% | 75 | 69 |
| Bensafrim e Barão de São João · 956bdc | Active | €1,499,000 | €6,194 | 32.7% | 80 | 72 |
| Bensafrim e Barão de São João · 956b76 | Active | €995,000 | €3,827 | 58.5% | 75 | 73 |
| Bensafrim e Barão de São João · 6d51da | Active | €420,000 | €5,185 | 43.7% | 86 | 71 |
| Median comp | €1,247,000 | €5,690 | 38.2% | 78 | 72 |
Short-term vacation rental The property’s price of €1,750,000 significantly exceeds the fair value of €947,314, resulting in a 45.9% gap that makes it unappealing for short-term rental investment. With a low gross yield of 1.7%, potential returns do not support the high entry cost in the competitive Algarve market. Buy-and-hold Investing in this villa for the long term is challenging due to its 45.9% premium over fair value, which indicates an inflated price compared to its actual worth. The modest 1.7% yield suggests that holding this asset might not provide adequate financial returns over time, especially given the economic influences of tourism in the Algarve. Family rental The property’s high asking price of €1,750,000, when compared to the fair value of €947,314, makes it an unsuitable option for families seeking long-term rentals. The likely limited tenant pool at this price point, combined with a yield of only 1.7%, compromises its effectiveness in the family rental market. Not ideal for: Student housing, Luxury market, Value-add renovation This villa's price is too high to attract student renters or buyers seeking value-add opportunities, given the significant disparity from its fair value. Additionally, the luxury market positioning does not align well with the property’s actual valuation, presenting further complications for investment.
Potential Rental Income Volatility The economic and tenant stability scores are both at 60/100, indicating a moderate risk of fluctuating rental income and potential tenant turnover.
