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, 6-bathroom villa of 420 m², built in 2008, energy rating B. Located Lagos municipality, Faro district. The villa features a swim-up bar seating area in the pool, along with a fully equipped outdoor bar and kitchen, enhancing its exceptional appeal for entertaining guests year-round.
The valuation. The asking price of €2,500,000 is significantly above the fair value of €2,180,106, indicating an overvaluation of €319,894 (12.8%). This higher asking price does not align with market expectations.
Fair value modelled at €2,180,106 from the area baseline, adjusted for condition and location. Asking €2,500,000 sits €319,894 (12.8%) above — overpriced versus fair value.
Asking €2,500,000 versus the Lagos, Faro area baseline of €1,717,800 (€4,090/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 84 · Materials 88 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Lagos, Faro
Area baseline €1,717,800 + condition +€52,500 + location +€172,086 = modelled fair value of €2,180,106 (€5,191/m²), a €319,894 (12.8%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| 911984 | Subject | €2,500,000 | €5,952 | — | 84 | 72 |
| Luz · 483b7c | Active | €1,350,000 | €3,342 | 43.9% | 85 | 70 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 0.7% | 80 | 73 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 8.8% | 77 | 66 |
| São Gonçalo de Lagos · 23f386 | Active | €1,300,000 | €3,148 | 47.1% | 72 | 70 |
| Median comp | €1,372,500 | €4,627 | 22.3% | 79 | 70 |
Short-term vacation rental The property’s pricing at €2,500,000 presents an obstacle for maximizing returns in the vibrant Lagos vacation rental market, where the fair value is set at €2,180,106. With a gross yield of just 2.4%, the potential income does not justify the upfront cost, leaving it challenging to capitalize on seasonal tourism effectively. Buy-and-hold Investing in this 4-bed villa as a buy-and-hold strategy is less favorable given its overpriced valuation of €2,500,000 compared to the fair market value of €2,180,106, resulting in a 12.8% gap. The property’s condition rating of 86/100 suggests it is well-maintained, but the high initial investment may hinder long-term profitability. Family rental While the property is situated in a decent neighborhood with a score of 72/100, its overpriced listing at €2,500,000 compared to a fair value of €2,180,106 makes it less appealing for families seeking rental options. The average yield of 2.4% further indicates that the financial returns are insufficient to make this property an attractive family rental investment.
Economic Volatility Risk The economic stability score of 60/100 indicates that fluctuations in economic conditions could adversely impact property values and 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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