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, 3-bathroom house of 172 m², built in 1992, energy rating E. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features two distinct living areas with independent entrances, allowing for potential rental income or multigenerational living arrangements.
The valuation. The asking price of €329,000 sits significantly below the fair value of €598,385, making it underpriced by €269,385, or 81.9%. This presents an opportunity for immediate equity gain.
Fair value modelled at €598,385 from the area baseline, adjusted for condition and location. Asking €329,000 sits €269,385 (81.9%) below — the upside to fair value.
Asking €329,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €675,100 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 (Condition 58 · Materials 50 · Room dimensions 58). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €675,100 + condition -€55,094 + location +€52,855 = modelled fair value of €598,385 (€3,479/m²), a €269,385 (81.9%) gap versus the €329,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · dc15b2 | Subject | €329,000 | €1,913 | — | 58 | 72 |
| rua Nova da Aldeia | Active | €990,000 | €1,429 | 25.3% | — | 71 |
| São Gonçalo de Lagos · 4bc1de | Active | €395,000 | €1,899 | 0.7% | 60 | 70 |
| São Gonçalo de Lagos · 261e38 | Active | €1,300,000 | €3,148 | 64.6% | — | 72 |
| rua da Bela Vista | Active | €420,000 | €3,925 | 105.2% | 70 | 78 |
| Median comp | €705,000 | €2,524 | 31.9% | 65 | 72 |
Short-term vacation rental The property shows a strong potential for short-term vacation rentals given its 8.1% gross yield and its prime location in the tourist-heavy Algarve. With a fair value significantly higher than the listing price, this property stands out as an attractive investment opportunity for short-term rental enthusiasts. Buy-and-hold Investing in this property for the long-term is an appealing strategy due to its substantial gap from fair value, indicating potential appreciation in a tourism-driven market. The solid neighborhood rating of 72/100 further supports the likelihood of sustainable growth and demand in this region. Long-term rental While the property could work for long-term rentals, its condition rating of 55/100 may require some investment to make it more appealing for long-term tenants. However, the favorable yield of 8.1% could provide a steady income stream while the property's value moves towards its fair market assessment. Not ideal for student housing Given the neighborhood's characteristics and the lack of demand from students, this property would not be suitable for student housing. The area's economic strengths do not align with the requirements of the student market, making this a less favorable route for investment. Not ideal for luxury market The property does not fit the luxury market criteria, reflected in its condition and price point. Investing in this segment would likely yield lower returns as the local demand does not support high-end luxury offerings.
Tenant turnover risk With a tenant stability score of 70/100, there is a moderate risk of higher tenant turnover, which could lead to increased vacancy periods and lost rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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