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.
6-bedroom, 5-bathroom villa of 250 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique Feature: The property includes four separate apartments, offering excellent rental potential or multi-family living arrangements, and boasts lush gardens that enhance its outdoor ambiance.
The valuation. The asking price of €980,000 is significantly below the fair value of €1,304,650, representing a difference of €324,650 (24.9%). This property is subvalued, providing an excellent opportunity for investors.
Fair value modelled at €1,304,650 from 2 comparable sales in the area. Asking €980,000 sits €324,650 (24.9%) below — the upside to fair value.
Asking €980,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,142,917 (€4,572/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €1,142,917, adjusted for condition and micro-location, gives a modelled fair value of €1,304,650 (€5,219/m²), a €324,650 (24.9%) gap versus the €980,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · b32794 | Subject | €980,000 | €3,920 | — | 70 | 69 |
| parque do Moínho | Active | €815,000 | €3,937 | 0.4% | 74 | 73 |
| Odiáxere · 8933d3 | Active | €1,690,000 | €6,500 | 65.8% | 78 | 74 |
| Median comp | €1,252,500 | €5,219 | 33.1% | 76 | 74 |
Short-term vacation rental The property represents a strong opportunity in the short-term vacation rental market, benefitting from a fair value gap of 24.9%, allowing for potentially excellent returns. With a gross yield of 3.9% and the attractive features of the Algarve, high occupancy rates can be anticipated throughout the tourist season. Buy-and-hold Acquiring this villa for a buy-and-hold strategy is appealing due to its underpriced status and potential for price appreciation, as evidenced by its fair value of €1,304,650. The neighborhood's stable economic conditions and amenities, along with the property condition rating of 73/100, suggest a reliable long-term investment with steady demand. Family rental The property can serve effectively as a family rental, given its size and favorable location within a family-friendly neighborhood, despite a current gross yield of 3.9%. The home's spacious 6-bed layout coupled with nearby amenities indicates that it is well-suited for families looking for long-term residency in Lagos. Not ideal for student housing This property is not suitable for student housing, as it lacks proximity to higher education institutions and the specific features that attract this demographic. With a condition score of 73/100 and a family-oriented design, it is better positioned to meet the needs of longer-term family rentals and vacation purposes. Not ideal for luxury market The villa's pricing and current condition suggest it does not meet the standards expected in the luxury market. While the property has many attractive features, it lacks the unique characteristics that can command premium prices in high-end real estate. Not ideal for industrial investment This villa is clearly not appropriate for industrial investment as it is located in a residential area with tourist appeal. The value proposition and intended use do not align with the commercial demands inherent in industrial properties.
Economic Vulnerability With an economic stability score of 60/100 and a tenant stability score of 65/100, this property is at risk of fluctuations in rental demand and potential vacancies due to localized economic weaknesses.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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