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 country_house of 177 m², built in 2022, energy rating C. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. This property offers direct access to the Barão de São João Forest, providing a unique opportunity to experience rich biodiversity and enjoy a scenic sea view from its highest point.
The valuation. The asking price of €720,000 sits significantly below the fair value of €1,001,709, presenting a discount of €281,709 (28.1%). This property is therefore considered underpriced in the current market.
Fair value modelled at €1,001,709 from 6 comparable sales in the area. Asking €720,000 sits €281,709 (28.1%) below — the upside to fair value.
Asking €720,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €854,782 (€4,829/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €854,782, adjusted for condition and micro-location, gives a modelled fair value of €1,001,709 (€5,659/m²), a €281,709 (28.1%) gap versus the €720,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Bensafrim e Barão de São João · 4a4340 | Subject | €720,000 | €4,068 | — | 73 | 73 |
| rua António Rosado, 13 | Active | €540,000 | €5,455 | 34.1% | 62 | 71 |
| Barão de São Miguel · 8ee4db | Active | €950,000 | €5,864 | 44.2% | 75 | 74 |
| rua das Bicas | Active | €299,000 | €3,646 | 10.4% | 72 | 61 |
| via Algarviana | Active | €385,000 | €1,974 | 51.5% | 70 | 62 |
| Median comp | €462,500 | €4,551 | 11.9% | 71 | 67 |
Long-term rental The property presents a significant opportunity for long-term rental given its fair value gap of 28.1%, positioning it attractively for stable income generation. Despite a 0% gross yield, the property’s condition and neighborhood scores suggest potential for reliable tenant quality in a desirable tourist region like Algarve. Buy-and-hold Investing in this property for the long-term allows for capital appreciation, especially as its market value is significantly below the fair value. The favorable location in a tourism-dense area enhances its potential for value growth, making it a strong candidate for a buy-and-hold strategy. Short-term vacation rental With its proximity to tourist attractions in the Algarve, this property is well-suited for a short-term vacation rental strategy, capitalizing on the booming rental market in the region. The fair value indication suggests a solid potential for high occupancy rates and rental yield, despite the initial lack of gross rental income reported.
Economic Volatility Risk Given an economic stability score of 65/100, there is a moderate risk of economic downturn impacting tenant retention and overall property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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