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, 3-bathroom villa of 298 m², built in 2007, energy rating D. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. This villa boasts a unique wooden house, perfect for an atelier or office, and a meticulously maintained vegetable garden with a greenhouse, enhancing outdoor living experiences.
The valuation. The asking price of €1,195,000 sits 25.1% below the fair value of €1,494,559, indicating that this property is subvalued in the current market. This presents a unique opportunity for potential investors.
Fair value modelled at €1,494,559 from the area baseline, adjusted for condition and location. Asking €1,195,000 sits €299,559 (25.1%) below — the upside to fair value.
Asking €1,195,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €1,387,488 (€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 63/100 (Housing Market 80 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Bensafrim e Barão de São João, Lagos, Faro
Area baseline €1,387,488 + condition +€34,922 + location +€72,149 = modelled fair value of €1,494,559 (€5,015/m²), a €299,559 (25.1%) gap versus the €1,195,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Bensafrim e Barão de São João · 956ddd | Subject | €1,195,000 | €4,010 | — | 80 | 63 |
| estrada Sem Nome, 85 | Active | €1,195,000 | €4,010 | 0% | 80 | 72 |
| rua do Rossio | Active | €380,000 | €3,040 | 24.2% | 75 | 62 |
| Bensafrim e Barão de São João · f363bb | Active | €415,000 | €1,774 | 55.8% | 65 | 72 |
| Bensafrim e Barão de São João · 99f40d | Active | €310,000 | €1,422 | 64.5% | 42 | 65 |
| Median comp | €397,500 | €2,407 | 40.0% | 70 | 69 |
Short-term vacation rental The villa's prime location in a tourist-heavy area of the Algarve makes it an attractive option for short-term vacation rentals, capitalizing on the 25.1% gap from its fair value. With a gross yield of 3.1%, the potential for high occupancy rates supports a strong return on investment. Buy-and-hold This property is a suitable buy-and-hold investment given its fair value significantly exceeds the listing price, indicating a potential appreciation over time. The villa's condition rating of 83/100 suggests it is in excellent shape, likely requiring minimal immediate maintenance while being a desirable option for future homeowners or renters. Value-add renovation The villa presents an opportunity for value-add renovation, as the current price is below its fair market value, allowing for potential upgrades to enhance its appeal. Investing in renovations would likely boost both the condition and attractiveness of the property, potentially increasing rental income and resale value in this tourist-centric market.
Economic downturn risk The economic stability score of 55 indicates a potential risk of economic downturns which could result in decreased tenant retention and increased vacancy rates.
