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 413 m², built in 2001, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This villa offers an expansive basement level with a fully equipped gym and a billiard room, along with direct access to the golf course's first tee.
The valuation. The asking price of €1,300,000 is significantly below the fair value of €1,600,495, representing a discount of €300,495 (23.1%). This indicates that the property is underpriced and presents an attractive opportunity for investors.
Fair value modelled at €1,600,495 from the area baseline, adjusted for condition and location. Asking €1,300,000 sits €300,495 (23.1%) below — the upside to fair value.
Asking €1,300,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,612,765 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 70 · Materials 78 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 78/100 (Housing Market 85 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €1,612,765 + condition -€3,227 + location +€161,526 = modelled fair value of €1,600,495 (€3,875/m²), a €300,495 (23.1%) gap versus the €1,300,000 asking price.
Short-term vacation rental This property presents a compelling opportunity for short-term vacation rentals, given its prime location in the tourist-favored Algarve region. With a gross yield of 3.8% and an estimated 23.1% gap against fair value, it can capitalize on high demand from visitors seeking quality accommodations. Long-term rental As a long-term rental investment, this house offers a promising return with a gross yield of 3.8% in a safe neighborhood that boasts a solid tenant quality rating of 78/100. Its spacious layout and appealing condition score of 75/100 further enhance its attractiveness to potential long-term tenants. Buy-and-hold Investing in this property as a buy-and-hold strategy aligns well with the expected growth in the Algarve region, supported by a strong tourism-driven economy. The current market position, being 23.1% below fair value, provides an advantageous entry point for long-term appreciation in value. Not ideal for student housing Given the property’s character and neighborhood profile, it is not well-suited for student housing, which typically requires proximity to educational institutions and amenities tailored for young adults. Its market positioning and the nature of the local economy indicate a mismatch for this demographic. Not ideal for industrial investment The property is not a fit for industrial investment, as it is located in a predominantly residential and tourist-focused area. The local economic dynamics do not support a viable industrial sector, making this strategy misaligned with the property’s strengths.
Tenant turnover risk The relatively high tenant stability score of 75/100 suggests a low risk of turnover, but combined with an economic stability score of 70/100, it indicates a potential vulnerability to market fluctuations that could affect tenant retention and rent payments.
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