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, 3-bathroom villa of 99 m², built in 1962, energy rating E. Located on rua António Rosado, 13, Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: This villa includes a rooftop terrace for enjoying panoramic views and sunsets, and a garage with conversion potential into a self-contained studio. Location Highlights: Just a short drive from the beaches and historic center of Lagos.
The valuation. The asking price of €540,000 is significantly below fair value by €176,503 (24.6%), indicating this property is underpriced. This presents a compelling opportunity for buyers to acquire a valuable asset in a desirable location.
Fair value modelled at €716,503 from 6 comparable sales in the area. Asking €540,000 sits €176,503 (24.6%) below — the upside to fair value.
Asking €540,000 versus the rua António Rosado, 13 area baseline of €687,170 (€6,941/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €687,170, adjusted for condition and micro-location, gives a modelled fair value of €716,503 (€7,237/m²), a €176,503 (24.6%) gap versus the €540,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua António Rosado, 13 | Subject | €540,000 | €5,455 | — | 62 | 71 |
| via Algarviana | Active | €385,000 | €1,974 | 63.8% | 70 | 62 |
| Bensafrim e Barão de São João · 25f476 | Active | €1,750,000 | €9,211 | 68.9% | 75 | 69 |
| Bensafrim e Barão de São João · 9568c7 | Active | €1,750,000 | €9,211 | 68.9% | 82 | 61 |
| Bensafrim e Barão de São João · 6d51e1 | Active | €1,750,000 | €9,162 | 68.0% | 82 | 73 |
| Median comp | €1,750,000 | €9,187 | 68.4% | 79 | 66 |
Short-term vacation rental Given the €540,000 listing price for the villa, compared to a fair value of €716,503, this property presents a lucrative opportunity with a substantial 24.6% gap that could enhance profitability through short-term vacation rental channels. The location in the Algarve, coupled with its 3.1% gross yield, aligns perfectly with the region's booming tourism-driven economy, making it a solid investment for maximizing rental income. Buy-and-hold Acquiring this villa at the current listing price allows for immediate value appreciation potential, given that it is assessed at €716,503, resulting in a 24.6% undervaluation. The long-term stability offered by a strong tourism market and solid neighborhood ratings supports a promising buy-and-hold strategy as property values are likely to rise over time. Long-term rental Investing in this villa as a long-term rental property is viable due to its favorable purchase price of €540,000 relative to its fair market value of €716,503, indicating a potential for steady rental returns. The region's focus on tourism assures a consistent demand for rentals, which is further supported by the property’s decent condition and neighborhood rating of 71/100, enhancing its appeal to potential tenants.
Economic Vulnerability The property faces financial instability risk due to a low economic stability score of 55/100, which may affect tenant occupancy and investment returns.
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