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.
4-bedroom, 4-bathroom house of 260 m², built in 1963, energy rating B. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a converted garage office with an attached w.c., and the garden features enchanting seating areas and a walled pool with terraces, ideal for entertaining.
The valuation. The asking price of €995,000 is significantly below the fair value of €1,335,338, indicating a difference of €340,338 (34.2%). This property is therefore underpriced, presenting an intriguing opportunity for potential investors.
Fair value modelled at €1,335,338 from the area baseline, adjusted for condition and location. Asking €995,000 sits €340,338 (34.2%) below — the upside to fair value.
Asking €995,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €1,210,560 (€4,656/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 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 78 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Bensafrim e Barão de São João, Lagos, Faro
Area baseline €1,210,560 + condition +€13,406 + location +€111,372 = modelled fair value of €1,335,338 (€5,136/m²), a €340,338 (34.2%) gap versus the €995,000 asking price.
Short-term vacation rental This property, located in the economically vibrant Algarve region, has the potential for significant short-term rental income, which is supported by a fair value gap of 34.2%. With a solid property condition score of 78/100, it is poised to attract tourists seeking quality accommodations in a desirable area. Long-term rental Given the prominent fair value assessment compared to the listing price, this property shows promise as a long-term rental investment, especially in a region benefiting from tourism. The strong tenant quality and the good condition rating enhance its attractiveness for sustained rental income. Buy-and-hold As the real estate market in Algarve continues to thrive due to tourism, this property represents a compelling buy-and-hold opportunity at a listing price below fair value. The combination of its current condition and favorable neighborhood ratings suggests it will appreciate over time, making it a strategic long-term investment. Not ideal for: Student housing, Industrial use, Luxury market The unique characteristics and suburban setting of this property make it unsuited for student housing or industrial use, which require different attributes. Additionally, the lack of luxury finishes means it does not align with high-end market demands.
Tenant turnover risk The combination of a tenant stability score of 70/100 with an economic stability score of 65/100 suggests a moderate risk of tenant turnover, which could lead to increased vacancy rates and associated costs.
