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, 4-bathroom villa of 308 m², built in 2008. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. The villa features a private pool and large terrace with stunning sea views, enhancing outdoor living and entertainment possibilities in a tranquil, well-maintained setting.
The valuation. The asking price of €1,062,500 is above the fair value of €969,492 by €93,008 (9.6%). This property is fairly valued, making it a reasonable investment opportunity.
Fair value modelled at €969,492 from 6 comparable sales in the area. Asking €1,062,500 sits €93,008 (9.6%) above — overpriced versus fair value.
Asking €1,062,500 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €790,275 (€2,566/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €790,275, adjusted for condition and micro-location, gives a modelled fair value of €969,492 (€3,148/m²), a €93,008 (9.6%) gap versus the €1,062,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · b3295b | Subject | €1,062,500 | €3,450 | — | 72 | 74 |
| São Gonçalo de Lagos · 23f386 | Active | €1,300,000 | €3,148 | 8.8% | 72 | 70 |
| São Gonçalo de Lagos · 6fb85c | Active | €1,300,000 | €3,148 | 8.8% | 73 | 69 |
| São Gonçalo de Lagos · 956e96 | Active | €1,300,000 | €3,148 | 8.8% | 70 | 78 |
| São Gonçalo de Lagos · ba574b | Active | €1,300,000 | €3,148 | 8.8% | 72 | 78 |
| Median comp | €1,300,000 | €3,148 | 8.7% | 72 | 74 |
Short-term vacation rental The property benefits from the high tourist attraction of the Algarve, making it suitable for short-term vacation rentals in a competitive market. However, with a fair value of €969,492 versus the listing at €1,062,500, potential returns are limited given the 3.4% gross yield. Buy-and-hold Investors should consider the long-term appreciation potential of the villa in the strong real estate market of Lagos, which is supported by the region’s ongoing popularity. Although the property is priced fairly, the current market conditions suggest modest growth opportunities without immediate value enhancement. Family rental Given the neighborhood's decent rating of 74/100 for tenant quality, the villa could serve well as a family rental, accommodating demand in a thriving residential area. Still, the property does not present a compelling value proposition at its current price point, which does not suggest significant upside for family tenants. Not ideal for: Student housing The villa is not suited for student housing purposes, as the demand in its location leans more towards vacation and family rentals rather than dormitory-style living. The fair value context also indicates that investing in student housing here may not yield satisfactory returns. Not ideal for: Industrial projects The location's profile does not align with industrial project potential, given the residential focus and tourism-driven economy. The fair value assessment implies that real estate investments should concentrate on existing residential opportunities rather than industrial developments.
Economic Impact Risk With an economic stability score of 60/100, there is a moderate risk of economic downturns affecting rental income and property values. Tenant Retention Risk A tenant stability score of 70/100 suggests potential challenges in maintaining long-term tenants, which could lead to increased vacancy rates and turnover costs.
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