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, 4-bathroom villa of 352 m², built in 2024, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Stunning outdoor living spaces with a private pool and multiple terraces provide ample opportunities for relaxation and entertaining, complemented by panoramic views over Lagos and Meia Praia Bay.
The valuation. The asking price of €1,225,000 is below the fair value of €1,386,269, indicating a significant discount of €161,269 (13.2%). This property presents a compelling opportunity for buyers seeking value.
Fair value modelled at €1,386,269 from the area baseline, adjusted for condition and location. Asking €1,225,000 sits €161,269 (13.2%) below — the upside to fair value.
Asking €1,225,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,381,600 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €1,381,600 + condition +€44,000 + location +€113,085 = modelled fair value of €1,386,269 (€3,938/m²), a €161,269 (13.2%) gap versus the €1,225,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 4d475e | Subject | €1,225,000 | €3,480 | — | 80 | 73 |
| rua da Ameijeira | Active | €750,000 | €2,820 | 19.0% | 71 | 73 |
| jardim das Calicas | Active | €1,595,000 | €5,145 | 47.8% | 83 | 72 |
| avenida Atlântico | Active | €810,000 | €3,115 | 10.5% | 82 | 80 |
| São Gonçalo de Lagos · 49b92e | Active | €1,595,000 | €6,702 | 92.6% | 83 | 75 |
| Median comp | €1,202,500 | €4,130 | 18.7% | 83 | 74 |
Long-term rental The villa at São Gonçalo de Lagos offers a strong opportunity for long-term rental with a fair value gap of 13.2%, reflecting a property that is subvalued compared to current listings. Despite its gross yield of 2.8%, the steadily growing demand in this tourist-influenced area suggests potential for consistent occupancy rates. Short-term vacation rental Given the robust tourism influx during peak seasons, this property is well-suited for short-term vacation rentals, capitalizing on its subvalued status of €1,225,000 versus a fair value of €1,386,269. The appealing condition rating of 85/100 further supports its desirability in the vacation rental market. Buy-and-hold As a buy-and-hold investment, this villa represents a strategic opportunity, being valued 13.2% below its fair market value while benefiting from the area's tourism-driven economic dynamics. The villa's quality condition and family-friendly amenities position it favorably for appreciating value over time while generating steady rental income. Not ideal for student housing Despite the moderate educational infrastructure nearby, the property’s characteristics do not align well with the typical demands of student housing, making it an unsuitable investment for this demographic. The focus on family-oriented features and vacationers detracts from its potential appeal to students. Not ideal for luxury market This villa is not positioned to attract the luxury market despite its prime location in Lagos, as its current listing price does not align with luxury expectations. The overall neighborhood ratings indicate a more moderate market rather than one that would support high-end luxury investments.
Economic Sensitivity With an economic stability score of 65/100, there is a risk of economic downturns impacting tenant retention and rental income due to potential job losses or decreased consumer spending.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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