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 villa of 242 m², built in 1994, energy rating C. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: The property includes two wells for irrigation, ensuring lush gardens year-round, and a fully equipped summer kitchen by the saltwater pool for seamless outdoor entertaining.
The valuation. The asking price of €1,499,000 exceeds the fair value of €1,254,266 by €244,734 (16.3%). Consequently, this property is considered overpriced.
Fair value modelled at €1,254,266 from the area baseline, adjusted for condition and location. Asking €1,499,000 sits €244,734 (16.3%) above — overpriced versus fair value.
Asking €1,499,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €1,126,752 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 80 · 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 €1,126,752 + condition +€28,359 + location +€99,154 = modelled fair value of €1,254,266 (€5,183/m²), a €244,734 (16.3%) gap versus the €1,499,000 asking price.
Short-term vacation rental The property's listing price of €1,499,000 is significantly above its fair value of €1,254,266, making it a less attractive option for short-term vacation rentals. With a gross yield of only 2.2%, this investment may not generate the expected returns in a competitive rental market. Long-term rental At a price of €1,499,000, the property is overpriced compared to its fair value, which limits the potential for long-term rental profitability. The 2.2% gross yield suggests that this investment may struggle to provide adequate cash flow in the long-term rental market. Buy-and-hold Given the significant gap between the listing price and the fair value, this villa is not a prudent buy-and-hold investment at €1,499,000. The 2.2% gross yield does not justify the elevated acquisition cost, leading to concerns about long-term appreciation in value.
Economic Downturn Risk There is a potential risk of decreased demand for tenants due to the economic stability score of 65/100, which indicates vulnerabilities in the local economy.
