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.
3-bedroom, 2-bathroom house of 195 m², built in 1997, energy rating C. Located on via Algarviana, Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: This property includes solar panels for water heating and a heat recovery fireplace, enhancing energy efficiency while maintaining traditional charm in a tranquil village setting.
The valuation. The asking price of €385,000 sits significantly below the fair value of €943,883, representing a discount of €558,883 (145.2%). Verdict: underpriced. Buy-to-flip angle. With strategic renovations, this property could be transformed for resale, maximizing profit potential in a favorable market cycle. Buy-to-let angle. Given its location in the Algarve, the property is well-suited for long-term rental or short-term vacation rentals, offering potential for steady cash flow despite current yield estimates.
Fair value modelled at €943,883 from the area baseline, adjusted for condition and location. Asking €385,000 sits €558,883 (145.2%) below — the upside to fair value.
Asking €385,000 versus the via Algarviana area baseline of €797,550 (€4,090/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 70 · Materials 75 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 50 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
via Algarviana
Area baseline €797,550 + condition -€7,617 + location +€43,580 = modelled fair value of €943,883 (€4,840/m²), a €558,883 (145.2%) gap versus the €385,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| via Algarviana | Subject | €385,000 | €1,974 | — | 70 | 62 |
| Bensafrim e Barão de São João · 956812 | Active | €460,000 | €3,358 | 70.1% | — | 74 |
| 96c5f2 | Active | €425,000 | €5,313 | 169.1% | 68 | 70 |
| Bensafrim e Barão de São João · ba5849 | Active | €500,000 | €2,500 | 26.6% | 25 | 72 |
| 49b939 | Active | €475,000 | €5,793 | 193.4% | 80 | 72 |
| Median comp | €467,500 | €4,336 | 119.6% | 68 | 72 |
Long-term rental The property in Bensafrim e Barão de São João is positioned for long-term rental growth, given its significant gap to fair value at 145.2%. The local tenant quality and emerging neighbourhood characteristics further enhance its potential to attract reliable long-term tenants. Short-term vacation rental With a substantial fair value of €943,883, this property represents an attractive opportunity for short-term vacation rental investments in a region known for its tourism. The inherent strength of the Algarve as a tourist destination, combined with the property’s well-rated condition, positions it favorably in the short-term rental market. Buy-and-hold Investing in this property allows for a strategically advantageous buy-and-hold approach, effectively capitalizing on the significant valuation gap. The sound structural condition and promising location suggest that property value appreciation over time could yield substantial long-term gains.
Economic Vulnerability The economic stability score of 50/100 indicates a significant risk due to a potentially unstable local economy, which could affect property demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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