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 Lagos municipality, Faro district. Enjoy stunning panoramic views from the rooftop terrace, perfect for entertaining, along with a dedicated outdoor laundry area and sink for barbecues.
The valuation. The asking price of €550,000 is €80,948 (14.7%) above the fair value of €469,052, indicating that the property is overpriced. This discrepancy suggests that potential buyers should exercise caution and consider market conditions before proceeding.
Fair value modelled at €469,052 from the area baseline, adjusted for condition and location. Asking €550,000 sits €80,948 (14.7%) above — overpriced versus fair value.
Asking €550,000 versus the Lagos, Faro area baseline of €372,190 (€4,090/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 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Lagos, Faro
Area baseline €372,190 + condition +€2,986 + location +€42,370 = modelled fair value of €469,052 (€5,154/m²), a €80,948 (14.7%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| 225bf6 | Subject | €550,000 | €6,044 | — | 75 | 75 |
| Mexilhoeira Grande · 956c8c | Active | €549,000 | €4,323 | 28.5% | 74 | 70 |
| estrada Sem Nome, 85 | Active | €1,195,000 | €4,010 | 33.7% | 80 | 72 |
| São Gonçalo de Lagos · 956b62 | Active | €420,000 | €3,925 | 35.1% | 75 | 71 |
| Odiáxere · 49b707 | Active | €389,000 | €4,987 | 17.5% | 75 | 66 |
| Median comp | €484,500 | €4,167 | 31.1% | 75 | 71 |
Short-term vacation rental This 2-bed villa in Lagos, listed at €550,000, is overpriced by 14.7% compared to its fair value of €469,052, limiting its potential as a short-term vacation rental. With a gross yield of only 2.5%, the expected return on investment may not justify the financial outlay required to purchase this property. Long-term rental The villa's current valuation of €550,000 suggests it is overpriced by 14.7% relative to its fair value of €469,052, which could hinder attractiveness as a long-term rental investment. Given the gross yield of 2.5%, the property may not generate sufficient rental income to cover costs and provide adequate return. Buy-and-hold With the villa priced at €550,000, it stands 14.7% above its fair value of €469,052, making it less favorable for a buy-and-hold strategy. The modest gross yield of 2.5% indicates limited profitability over the long term, despite the appealing location's tourism-driven economy. Not ideal for Student housing, Industrial property.
Moderate Economic Risk With an economic stability score of 65/100, there is a moderate risk of economic downturns impacting rental income or property value stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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