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 features a high-end summer kitchen and BBQ area, complemented by a heated swimming pool and jacuzzi, offering a luxurious outdoor entertaining experience.
The valuation. The asking price of €1,625,000 is significantly above the fair value of €856,582, resulting in an overpriced classification of €768,418 (47.3%).
Fair value modelled at €856,582 from the area baseline, adjusted for condition and location. Asking €1,625,000 sits €768,418 (47.3%) 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 81/100 (Condition 78 · Materials 85 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Baden Powell, 8
Area baseline €890,975 + condition +€19,508 + location +€44,390 = modelled fair value of €856,582 (€3,773/m²), a €768,418 (47.3%) 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 | — | 78 | 64 |
| 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 |
| São Gonçalo de Lagos · 9117a5 | Active | €1,100,000 | €7,801 | 9.0% | 78 | 72 |
| rua Primeiro de Maio | Active | €825,000 | €4,365 | 39.0% | 80 | 73 |
| Median comp | €1,347,500 | €6,860 | 4.2% | 82 | 74 |
Short-term vacation rental The property is listed at €1,625,000, which is significantly above its fair value of €856,582, indicating a 47.3% premium that makes it less viable for short-term rental strategies. With a gross yield of only 2.7%, the financial returns do not justify the investment given the area's tourist-driven market. Buy-and-hold Due to the property's excessive pricing at €1,625,000 compared to a fair value of €856,582, it presents challenges for a long-term buy-and-hold strategy. The low yield of 2.7% further emphasizes that the current investment does not align well with expected rental income growth or market appreciation. Value-add renovation At a listing price of €1,625,000, substantially higher than its fair value of €856,582, the potential for profit through value-add renovations is severely diminished. The property’s condition rating of 81/100 suggests some room for improvement, but the initial overvaluation complicates achieving a worthwhile return on investment. Not ideal for With the property priced at €1,625,000 and a fair value of €856,582, it is ill-suited for student housing investments. Moreover, its entry into the luxury market is questionable, as the excessive listing price does not match the potential yield and neighborhood quality. Location context This property, near the Algarve tourist region, being priced at €1,625,000 while fair value stands at €856,582, suggests an inflated perception of its residential appeal beyond the tourist market. Such a premium pricing structure may limit its attractiveness in an area heavily reliant on tourism rather than stable long-term residents.
Economic Vulnerability The property has a relatively low economic stability score of 55/100, which suggests a potential risk of decreased demand, affecting rental income stability.
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