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.
8-bedroom, 11-bathroom villa of 298 m², built in 2000, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a registered borehole for irrigation and water supply, enhancing sustainability and minimizing utility costs, alongside a well-equipped summer kitchen for outdoor entertaining.
The valuation. The asking price of €1,500,000 is significantly above the fair value of €1,142,462, showing a discrepancy of €357,538 (23.8%). This property is considered overpriced based on the current market assessment.
Fair value modelled at €1,142,462 from the area baseline, adjusted for condition and location. Asking €1,500,000 sits €357,538 (23.8%) above — overpriced versus fair value.
Asking €1,500,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,040,616 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €1,040,616 + condition +€14,434 + location +€87,412 = modelled fair value of €1,142,462 (€3,834/m²), a €357,538 (23.8%) gap versus the €1,500,000 asking price.
Short-term vacation rental The property's price of €1,500,000 is significantly above the fair value of €1,142,462, making it a less attractive option for investors seeking a profitable short-term rental in the competitive Algarve market. With a gross yield of 0% and seasonal tourism fluctuations, the investment return potential seems limited. Long-term rental Given its fair value of €1,142,462 compared to the listing price, the property is overpriced for long-term rental strategies in a neighbourhood rated 71/100. This lack of financial viability, coupled with a gross yield of 0%, suggests investors might face challenges in generating sustainable rental income over time.
Economic Vulnerability With an economic stability score of 60/100, there is a significant risk that fluctuating economic conditions could negatively impact rental income.
