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 147 m², built in 2002, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a heated saltwater pool and a versatile basement with potential for additional living or recreational spaces, enhancing its functionality and appeal.
The valuation. The asking price of €698,000 is significantly below the fair value of €780,809, making this property subpriced by €82,809, or 10.6%. This creates an attractive entry point for potential investors.
Fair value modelled at €780,809 from 6 comparable sales in the area. Asking €698,000 sits €82,809 (10.6%) below — the upside to fair value.
Asking €698,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €726,970 (€4,945/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €726,970, adjusted for condition and micro-location, gives a modelled fair value of €780,809 (€5,312/m²), a €82,809 (10.6%) gap versus the €698,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 4a446b | Subject | €698,000 | €4,748 | — | 75 | 73 |
| avenida Atlântico, 82 | Active | €849,000 | €3,912 | 17.6% | 82 | 71 |
| São Gonçalo de Lagos · 49b92e | Active | €1,595,000 | €6,702 | 41.1% | 83 | 75 |
| rua da Barreira, 38 | Active | €650,000 | €6,989 | 47.2% | 80 | 71 |
| São Gonçalo de Lagos · 956cba | Active | €400,000 | €3,922 | 17.4% | 75 | 76 |
| Median comp | €749,500 | €5,312 | 11.9% | 81 | 73 |
Short-term vacation rental The property in São Gonçalo de Lagos is well-positioned for short-term vacation rentals due to its location in a tourist-centric region, which enhances its income potential. With a fair value gap of 10.6%, securing this house at €698,000 offers an attractive entry point into the lucrative vacation rental market. Buy-and-hold Investing in this property for a buy-and-hold strategy is promising as it is currently valued below fair market at €698,000, presenting a potential equity gain over time. Given the gross yield of 3%, the investment's appreciation within a desirable neighborhood enhances long-term financial stability. Family rental The property is a suitable option for a family rental, benefiting from decent neighborhood ratings and size suitable for families at 147m². While the yield at 3% is modest, the subvalued price of €698,000 presents an opportunity for steady cash flow given the home's potential to attract long-term tenants in a desirable area.
Economic Vulnerability With an economic stability score of 65/100, there is a risk that potential economic downturns could negatively impact real estate values in the area, affecting long-term investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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