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 townhouse of 189 m², built in 2018, energy rating B. Located on rua Primeiro de Maio, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property boasts a stunning glass atrium that enhances natural light and houses an internal garden, adding a unique architectural element to the living space.
The valuation. The asking price of €825,000 is €80,668 (9.8%) above the fair value of €744,332. This property is currently considered overpriced.
Fair value modelled at €744,332 from the area baseline, adjusted for condition and location. Asking €825,000 sits €80,668 (9.8%) above — overpriced versus fair value.
Asking €825,000 versus the rua Primeiro de Maio area baseline of €741,825 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Primeiro de Maio
Area baseline €741,825 + condition +€23,625 + location +€60,719 = modelled fair value of €744,332 (€3,938/m²), a €80,668 (9.8%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Primeiro de Maio | Subject | €825,000 | €4,365 | — | 80 | 73 |
| jardim das Calicas | Active | €1,595,000 | €5,145 | 17.9% | 83 | 72 |
| São Gonçalo de Lagos · 49b92e | Active | €1,595,000 | €6,702 | 53.5% | 83 | 75 |
| São Gonçalo de Lagos · 4d475e | Active | €1,225,000 | €3,480 | 20.3% | 80 | 73 |
| São Gonçalo de Lagos · 6ebaab | Active | €675,000 | €4,891 | 12.1% | 78 | 73 |
| Median comp | €1,410,000 | €5,018 | 15.0% | 82 | 73 |
Long-term rental Given the current asking price of €825,000, the property is overpriced relative to its fair value of €744,332, representing a gap of 9.8%. With a gross yield of only 3.8%, long-term rental potential does not justify the investment, making it less appealing for steady cash flow. Short-term vacation rental Despite being in a prime tourist location near the Algarve coast, the property’s asking price exceeds its fair value, leading to a significant investment risk. The combination of the current market price and the 3.8% yield points towards a challenging short-term rental strategy, especially in a competitive market. Family rental At a price of €825,000, it is evident that the townhouse is overpriced compared to the fair value of €744,332, posing a barrier for families seeking affordable accommodations. The modest yield of 3.8% further emphasizes the lack of attractiveness for families looking to rent in this neighborhood, making it less feasible as a family rental option.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk due to potential fluctuations in the local economy affecting property value and tenant retention.
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