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, 4-bathroom villa of 274 m², built in 2002, energy rating C. Located on parque do Moínho, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This villa features a unique outbuilding with an independent entrance, ideal for guest accommodation or rental income, and boasts a heat recovery system enhancing energy efficiency.
The valuation. The asking price of €895,000 sits €144,645 (16.2%) below the fair value of €1,039,645, indicating it is underpriced for the market. This presents an attractive opportunity for investors seeking value.
Fair value modelled at €1,039,645 from the area baseline, adjusted for condition and location. Asking €895,000 sits €144,645 (16.2%) below — the upside to fair value.
Asking €895,000 versus the parque do Moínho area baseline of €1,075,450 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 75 · Materials 70 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
parque do Moínho
Area baseline €1,075,450 + condition -€12,844 + location +€95,681 = modelled fair value of €1,039,645 (€3,794/m²), a €144,645 (16.2%) gap versus the €895,000 asking price.
Short-term vacation rental The property presents a strong investment opportunity as a short-term vacation rental, especially given its 3.9% gross yield in a region renowned for tourism. Its location in Algarve enhances its appeal to travelers, making it likely to appreciate in demand. Buy-and-hold As a buy-and-hold investment, this villa is favorable due to its substantial gap from the fair value, indicating potential for future appreciation as the market adjusts. The neighborhood's positive ratings suggest a stable environment for long-term value retention. Family rental Positioning this villa for family rental is a strategic approach, supported by the solid neighborhood condition of 75/100 and its spacious layout. The existing amenities and housing market in the area indicate a conducive environment for families seeking quality living. Not ideal for student housing This property is not suitable for student housing considering its design and location, which cater more to families and vacationers. Additionally, the rental yield associated with student housing typically underperforms in this region, where long-term residential demand is more pronounced. Not ideal for Industrial investment Investing in industrial properties is not recommended for this villa due to its residential characteristics and established neighborhood. The property’s suitability is limited to private residential use, making industrial ventures incompatible with its potential.
Market Vulnerability Economic stability score of 70/100 indicates potential economic fluctuations that may impact rental income or property value negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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