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 house of 120 m², energy rating B. Located on urbanização Vale da Lama, Odiáxere parish, Lagos municipality, Faro district. Noteworthy Features: This property includes an independent annex with a separate living space, enhancing versatility for guests or rental opportunities alongside panoramic views of the surrounding landscape.
The valuation. The asking price of €1,495,000 sits €1,023,533 (68.5%) above the fair value of €471,467, indicating that this property is overpriced.
Fair value modelled at €471,467 from the area baseline, adjusted for condition and location. Asking €1,495,000 sits €1,023,533 (68.5%) above — overpriced versus fair value.
Asking €1,495,000 versus the urbanização Vale da Lama area baseline of €422,040 (€3,517/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Vale da Lama
Area baseline €422,040 + condition +€13,875 + location +€38,552 = modelled fair value of €471,467 (€3,929/m²), a €1,023,533 (68.5%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Vale da Lama | Subject | €1,495,000 | €12,458 | — | 80 | 73 |
| Odiáxere · bf27b9 | Active | €8,000,000 | €44,944 | 260.8% | 78 | 70 |
| urbanização Monte Canelas | Active | €1,580,000 | €5,163 | 58.6% | 80 | 71 |
| Mexilhoeira Grande · 90d8e6 | Active | €2,750,000 | €6,410 | 48.5% | 85 | 67 |
| jardim da Meia Praia, 20 | Active | €565,000 | €4,414 | 64.6% | 75 | 76 |
| Median comp | €2,165,000 | €5,787 | 53.6% | 79 | 71 |
Short-term vacation rental The property is overpriced at €1,495,000, significantly exceeding the fair value of €471,467, creating a 68.5% gap that undermines its rental potential. With a gross yield of only 1.2%, the investment in the short-term rental market does not provide adequate returns given the current pricing. Long-term rental Given the high listing price relative to its fair value, this property at €1,495,000 falls short of being a viable long-term rental investment. The low yield of 1.2% indicates that prospective tenants may not justify such a high rental cost, limiting the market appeal. Buy-and-hold As a buy-and-hold investment, this property is decidedly overpriced at €1,495,000 compared to a fair value of €471,467, presenting a significant risk for future appreciation. The property's low yield and high initial investment suggest that it may not generate satisfactory returns over time despite the appealing location in Algarve. Not ideal for: Student housing, Luxury market, Industrial investment This property does not align well with the dynamics of student housing or the luxury market due to its inflated pricing and limited investment appeal. Additionally, its characteristics do not suit industrial investment, further diminishing its potential uses in a diverse portfolio.
Economic Vulnerability The property has an economic stability score of 65/100, indicating a moderate risk of economic fluctuations that could impact tenant demand and rental income sustainability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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