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, 2-bathroom house of 125 m², built in 1992, energy rating D. Located on rua do Rossio, Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: This property features a cozy wood-burning fireplace in the open-plan living area, and two bedrooms with access to a balcony offering panoramic countryside views.
The valuation. The asking price of €360,000 is significantly below the fair value of €533,832, representing an undervaluation of €173,832 (32.6%). This makes the property an attractive option for discerning investors seeking value. Buy-to-flip angle. With a strong focus on short-term vacation rentals and a potential for value-add renovations, the property can be quickly improved and flipped to yield a higher resale price in the growing Algarve market. Buy-to-let angle. The estimated gross yield of 5.2% (~€1,560/month) positions this property as an excellent buy-and-hold investment, especially considering the increasing demand for rental properties in tourist-friendly regions like Lagos.
Fair value modelled at €533,832 from 6 comparable sales in the area. Asking €360,000 sits €173,832 (32.6%) below — the upside to fair value.
Asking €360,000 versus the rua do Rossio area baseline of €522,558 (€4,180/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €522,558, adjusted for condition and micro-location, gives a modelled fair value of €533,832 (€4,271/m²), a €173,832 (32.6%) gap versus the €360,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Rossio | Subject | €360,000 | €2,880 | — | 78 | 64 |
| rua do Rossio | Active | €380,000 | €3,040 | 5.6% | 75 | 62 |
| estrada Sem Nome, 85 | Active | €1,195,000 | €4,010 | 39.2% | 80 | 72 |
| Bensafrim e Barão de São João · 956ddd | Active | €1,195,000 | €4,010 | 39.2% | 80 | 63 |
| Bensafrim e Barão de São João · 261f93 | Active | €290,000 | €4,531 | 57.3% | 75 | 77 |
| Median comp | €787,500 | €4,010 | 39.2% | 78 | 68 |
Short-term vacation rental Investing in this property for short-term vacation rentals is appealing given its 5.2% gross yield and the significant 32.6% gap to fair value, indicating strong potential for immediate cash flow and long-term appreciation. The location in the Algarve, coupled with increasing tourism, supports a robust demand for vacation accommodations. Buy-and-hold Acquiring this property as a buy-and-hold investment is justified by its fair value of €533,832, providing a clear opportunity for value appreciation in the long term. With the neighborhood's housing demand driven by tourism, this strategy benefits from sustained interest and potential rent increases. Value-add renovation Pursuing a value-add renovation for this property can enhance its current condition rating of 80/100, allowing for improved tenant appeal and higher rental rates. Given the fair value substantially exceeds the purchase price, strategic upgrades can significantly boost the property's market position and future returns.
Economic and Tenant Instability Risk: With both economic stability and tenant stability scores at 60/100, there is a heightened risk of fluctuating rental income and potential vacancy issues due to insufficient stability in the local economy and tenant base.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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