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 107 m², built in 2001, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. The property features a small terrace with sea view on the first floor, enhancing outdoor living potential in a sought-after coastal area.
The valuation. The asking price of €437,500 is significantly above fair value, which sits at €393,297, resulting in an overpriced status of €44,203 (10.1%). This discrepancy suggests potential challenges in realizing a return on investment.
Fair value modelled at €393,297 from the area baseline, adjusted for condition and location. Asking €437,500 sits €44,203 (10.1%) above — overpriced versus fair value.
Asking €437,500 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €419,975 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 (Condition 62 · Materials 68 · Room dimensions 69). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €419,975 + condition -€16,217 + location +€35,870 = modelled fair value of €393,297 (€3,676/m²), a €44,203 (10.1%) gap versus the €437,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · b7c37e | Subject | €437,500 | €4,089 | — | 62 | 74 |
| São Gonçalo de Lagos · 001a87 | Active | €650,000 | €5,328 | 30.3% | 62 | 75 |
| São Gonçalo de Lagos · 956b62 | Active | €420,000 | €3,925 | 4.0% | 75 | 71 |
| rua Marechal Furtado, 26 | Active | €700,000 | €4,375 | 7.0% | 70 | 72 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 14.1% | 75 | 66 |
| Median comp | €537,500 | €4,150 | 1.5% | 73 | 72 |
Long-term rental The property in São Gonçalo de Lagos is overpriced at €437,500, with a fair value of only €393,297, indicating a 10.1% gap. The gross yield of 4.4% is undercut by the high purchase price, making it an unfavorable long-term rental investment. Short-term vacation rental While the Algarve region is known for its tourist demand, this property’s listing price of €437,500 is above its fair value of €393,297, resulting in a 10.1% overpricing. This financial mismatch suggests that the profitability potential for short-term rentals is diminished, impacting the overall return on investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is complicated due to its current price of €437,500, which exceeds the fair market value of €393,297 by 10.1%. As a result, long-term appreciation expectations may not align with the current investment fundamentals, leading to potential underperformance in this strategy.
Economic Vulnerability The economic stability score of 65/100 suggests that there may be fluctuations in economic conditions that could impact rental income and property values negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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