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.
1-bedroom, 1-bathroom house of 61 m², built in 1951, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The property includes a central vacuum system, enhancing convenience and maintaining cleanliness throughout the well-designed living spaces. Outdoor Potential: The private yard offers a blank canvas for personalized landscaping.
The valuation. The asking price of €299,000 exceeds the fair value of €256,643 by €42,357, representing a 16.5% premium. This property is considered overpriced based on market analysis.
Fair value modelled at €256,643 from 6 comparable sales in the area. Asking €299,000 sits €42,357 (16.5%) above — overpriced versus fair value.
Asking €299,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €222,535 (€3,648/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 is above the parish average, lifting 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 €222,535, adjusted for condition and micro-location, gives a modelled fair value of €256,643 (€4,207/m²), a €42,357 (16.5%) gap versus the €299,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 46801f | Subject | €299,000 | €4,902 | — | 72 | 70 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 8.5% | 74 | 74 |
| São Gonçalo de Lagos · ba3e34 | Active | €410,000 | €5,256 | 7.2% | 80 | 78 |
| rua do Poço | Active | €319,000 | €4,493 | 8.3% | 75 | 68 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 28.3% | 75 | 66 |
| Median comp | €364,500 | €4,875 | 0.6% | 75 | 71 |
Short-term vacation rental The property is overpriced by 16.5% compared to its fair value, making it a less attractive option for short-term vacation rentals where competitive pricing is crucial. The potential yield of 4.5% may not sufficiently offset the high purchase price in a market particularly influenced by tourism dynamics. Buy-and-hold At €299,000, this property fails to represent a sound buy-and-hold investment due to its overvaluation, with a fair value of only €256,643. While the location in Algarve is desirable for long-term growth, the current price diminishes the potential for significant future returns. Long-term rental This 1-bed house is overpriced, presenting challenges for long-term rental investments, particularly in a market that demands value for tenants. With a gross yield of only 4.5%, the pricing does not align with the income potential in a neighborhood rated 70/100 for tenant quality, resulting in a less appealing investment case.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of market fluctuations that could impact rental income and property value negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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