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, 6-bathroom house of 207 m², built in 2007, energy rating C. Located on rua do Cerro das Mós, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features a stunning outdoor kitchen and pool area, surrounded by lush vegetation and fruit trees, perfect for enjoying Lagos' pleasant climate throughout the year.
The valuation. The asking price of €965,000 is considerably above the fair value of €800,078, indicating the property is overpriced by €164,922, or 17.1%. Buy-to-flip angle. A resale strategy could leverage the high-quality finishes and prime location for a profitable flip in a strong tourism market. Buy-to-let angle. The estimated gross yield of 3.1% suggests a rental income strategy through long-term leasing or short-term vacation rentals could generate €2,493 per month, appealing to potential tenants.
Fair value modelled at €800,078 from the area baseline, adjusted for condition and location. Asking €965,000 sits €164,922 (17.1%) above — overpriced versus fair value.
Asking €965,000 versus the rua do Cerro das Mós area baseline of €722,844 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 78 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Cerro das Mós
Area baseline €722,844 + condition +€19,406 + location +€57,828 = modelled fair value of €800,078 (€3,865/m²), a €164,922 (17.1%) gap versus the €965,000 asking price.
Short-term vacation rental Despite the appealing location near the Algarve, the property is overpriced by 17.1% relative to its fair value, making it a less attractive option for generating short-term rental income. With a gross yield of only 3.1%, potential returns may not justify the initial investment cost in a competitive tourism market. Buy-and-hold The current listing price of €965,000 is significantly above the fair value of €800,078, suggesting the property may not appreciate as anticipated over time. Investing in a property with such a high markup could limit long-term value growth and yield. Long-term rental At €965,000, the price point exceeds the fair value by 17.1%, resulting in a suboptimal entry point for long-term rental strategies. The 3.1% gross yield is unlikely to meet the expectations necessary for sustained income, especially given the competitive rental landscape in São Gonçalo de Lagos.
Economic Vulnerability The economic stability score of 60 indicates a potential for economic downturns that could affect rental income and property value significantly.
