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.
2-bedroom, 3-bathroom villa of 91 m², built in 1965, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This villa features a versatile closet that can easily be transformed into an additional bedroom or home office, adding flexibility to its living space.
The valuation. The asking price of €480,000 exceeds the fair value of €354,384 by €125,616 (26.2%). This property is considered overpriced based on current market assessments.
Fair value modelled at €354,384 from the area baseline, adjusted for condition and location. Asking €480,000 sits €125,616 (26.2%) above — overpriced versus fair value.
Asking €480,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €357,175 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 79 · Materials 77 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €357,175 + condition +€4,834 + location +€31,777 = modelled fair value of €354,384 (€3,894/m²), a €125,616 (26.2%) gap versus the €480,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 225b2f | Subject | €480,000 | €5,275 | — | 79 | 75 |
| rua Doutor Faria e Silva S / N | Active | €550,000 | €5,612 | 6.4% | 82 | 73 |
| São Gonçalo de Lagos · 956d0a | Active | €399,500 | €5,790 | 9.8% | 72 | 74 |
| São Gonçalo de Lagos · 261f51 | Active | €399,500 | €5,790 | 9.8% | 75 | 71 |
| jardim da Meia Praia, 20 | Active | €565,000 | €4,414 | 16.3% | 75 | 76 |
| Median comp | €474,750 | €5,701 | 8.1% | 75 | 74 |
Short-term vacation rental The property’s price of €480,000 exceeds its fair value of €354,384 by 26.2%, indicating that it is overpriced for this investment strategy. With a gross yield of only 2%, the potential for sound returns in the vacation rental market is limited, especially in a region with fluctuating seasonal demand. Long-term rental At €480,000, the villa significantly surpasses its fair market value, which could deter potential long-term tenants and hinder rental income performance. A gross yield of just 2% suggests that the investment may not deliver sufficient cash flow for long-term stability as rental rates do not appear to justify the high purchase price. Buy-and-hold Acquiring the property at an inflated price of €480,000 presents a challenge for a buy-and-hold strategy, considering its fair value sits at €354,384. The anticipated appreciation in a tourism-driven market must significantly outpace the current 2% yield to make this investment viable over time.
Economic downturn risk A score of 70/100 in economic stability indicates potential vulnerability to economic fluctuations that could affect tenant demand 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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