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.
4-bedroom, 4-bathroom house of 227 m², built in 2014, energy rating A. Located on rua Baden Powell, 8, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property boasts a heated swimming pool and jacuzzi, along with a summer kitchen and BBQ area, perfect for outdoor entertaining and relaxation.
The valuation. The asking price of €1,625,000 is significantly above the fair value of €874,811, indicating the property is overpriced by €750,189 (46.2%). This premium suggests a mismatch in market expectations and intrinsic value.
Fair value modelled at €874,811 from the area baseline, adjusted for condition and location. Asking €1,625,000 sits €750,189 (46.2%) above — overpriced versus fair value.
Asking €1,625,000 versus the rua Baden Powell, 8 area baseline of €890,975 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 75 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Baden Powell, 8
Area baseline €890,975 + condition +€6,030 + location +€76,098 = modelled fair value of €874,811 (€3,854/m²), a €750,189 (46.2%) gap versus the €1,625,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Baden Powell, 8 | Subject | €1,625,000 | €7,159 | — | 75 | 74 |
| rua José Lobo da Veiga, 152 | Active | €2,800,000 | €7,018 | 2.0% | 90 | 76 |
| São Gonçalo de Lagos · 49b92e | Active | €1,595,000 | €6,702 | 6.4% | 83 | 75 |
| rua Frederico Rato | Active | €1,850,000 | €6,491 | 9.3% | — | 66 |
| rua João Bráz, 3 | Active | €2,575,000 | €4,877 | 31.9% | 80 | 77 |
| Median comp | €2,212,500 | €6,597 | 7.9% | 83 | 76 |
Short-term vacation rental Given the property's overpriced valuation and gross yield of only 2.7%, it is fundamentally misaligned with the profitability expectations typical in the short-term rental market. Additionally, while tourism does drive demand in the region, the high listing price limits potential returns for vacation rental investments. Long-term rental The current market price of €1,625,000 significantly exceeds its fair value of €874,811, resulting in a substantial risk for long-term rental investors. With a neighborhood quality score of 74/100, the living conditions may attract tenants, but the inflated purchase price undermines the investment's viability. Buy-and-hold Investors considering a buy-and-hold strategy face challenges due to the property's overpriced nature, as they would be committing to a cash flow that is not commensurate with the market’s fair value. The 2.7% yield suggests that long-term growth may not justify the risk associated with such a high initial investment.
Tenant turnover risk: With a tenant stability score of 70/100, there is a potential risk of moderate turnover, which could lead to increased vacancy periods and associated costs.
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