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 villa of 153 m², built in 2003, energy rating C. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. Noteworthy Features: The property features an expansive outdoor area with a large pool and an outdoor shower, complemented by a brick barbecue and ample space for entertainment.
The valuation. The asking price of €795,000 is slightly below the fair value of €803,392, sitting at 1.0% less than the assessed worth. This suggests a fair pricing situation that warrants further consideration for potential investment.
Fair value modelled at €803,392 from 6 comparable sales in the area. Asking €795,000 sits €8,392 (1.0%) below — the upside to fair value.
Asking €795,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €663,856 (€4,339/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €663,856, adjusted for condition and micro-location, gives a modelled fair value of €803,392 (€5,251/m²), a €8,392 (1.0%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Bensafrim e Barão de São João · 4a4347 | Subject | €795,000 | €5,196 | — | 80 | 70 |
| São Gonçalo de Lagos · be9696 | Active | €5,200,000 | €9,943 | 91.3% | 85 | 68 |
| Bensafrim e Barão de São João · 42014d | Active | €420,000 | €5,185 | 0.2% | 80 | 74 |
| Bensafrim e Barão de São João · 6d51da | Active | €420,000 | €5,185 | 0.2% | 86 | 71 |
| Bensafrim e Barão de São João · 7355ec | Active | €420,000 | €5,185 | 0.2% | 75 | 70 |
| Median comp | €420,000 | €5,185 | 0.2% | 83 | 71 |
Short-term vacation rental The property’s location in the Algarve takes advantage of high seasonal tourist demand, making it a viable option for short-term vacation rentals. However, with a fair value of €803,392 and a yield of 2.2%, the current pricing reflects a market position that may not enhance profitability. Buy-and-hold Investing in this 3-bed villa as a buy-and-hold property could yield steady returns, but the 2.2% gross yield indicates modest cash flow potential. At a fair value of €803,392, the asset stands at a stable price point, but appreciation may be limited given the current market dynamics. Value-add renovation Although the villa is rated 82/100 in condition, there are opportunities to increase its value through targeted renovations, which could enhance both rental yield and market appeal. Nevertheless, at a fair price of €803,392, the property’s current valuation suggests that the upside may be constrained, limiting the impact of any enhancements.
Economic Vulnerability The economic stability score of 60/100 indicates a potential risk, suggesting reliance on a fluctuating economy that may affect tenant retention and 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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