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.
2-bedroom, 1-bathroom country_house of 60 m², built in 1970, energy rating F. Located on beco do Lopo, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The property's extensive state of disrepair offers a blank canvas for renovation enthusiasts looking to create a personalized living space in a rustic setting.
The valuation. The asking price of €120,000 is significantly below the fair value of €256,646, indicating the property is underpriced by €136,646 (53.2%). This presents a compelling opportunity for potential investors.
Fair value modelled at €256,646 from 6 comparable sales in the area. Asking €120,000 sits €136,646 (53.2%) below — the upside to fair value.
Asking €120,000 versus the beco do Lopo area baseline of €295,978 (€4,933/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 20/100 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 €295,978, adjusted for condition and micro-location, gives a modelled fair value of €256,646 (€4,277/m²), a €136,646 (53.2%) gap versus the €120,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco do Lopo | Subject | €120,000 | €2,000 | — | 15 | 69 |
| São Gonçalo de Lagos · bf284d | Active | €1,000,000 | €1,600 | 20.0% | 28 | 72 |
| Odiáxere · 001b50 | Active | €210,000 | €3,134 | 56.7% | — | 72 |
| Odiáxere · 90d983 | Active | €250,000 | €4,630 | 131.5% | 73 | 70 |
| Odiáxere · 49b829 | Active | €395,000 | €4,938 | 146.9% | — | 72 |
| Median comp | €322,500 | €3,882 | 94.1% | 51 | 72 |
Short-term vacation rental The property presents a compelling opportunity for a short-term vacation rental, given its 9% gross yield and proximity to popular tourist destinations in Algarve. With a fair value of €256,646, this subvalorizada property offers significant potential for capital appreciation as tourism in the region continues to thrive. Long-term rental Given the property’s strong yield of 9% gross and a fair market gap of 53.2%, it is poised to generate attractive returns as a long-term rental investment. The moderate neighbourhood score of 69/100 suggests a stable demand for rentals in the area, making it a solid choice for landlords seeking steady cash flow. Buy-and-hold This subvalorizada property represents an excellent buy-and-hold strategy, where investors can benefit from both cash flow from rental income and appreciation over time as the fair value significantly exceeds the listing price. The existing condition score of 20/100 allows for potential value-add renovations to increase overall property attractiveness and rental rates.
Economic Vulnerability With an economic stability score of 60/100, there is a notable risk of market fluctuations affecting property value and rental incomes, which could lead to potential financial instability.
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