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.
6-bedroom, 5-bathroom villa of 250 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique Feature: The villa's layout as four individual apartments allows for versatile living arrangements, making it ideal for multi-family use or vacation rentals. Outdoor Feature: The property boasts beautifully established lush gardens, a saltwater pool with a removable cover, and an outdoor barbecue area perfect for entertaining.
The valuation. The asking price of €980,000 is slightly below the fair value of €984,300, indicating that the property is reasonably priced within the current market context, at a margin of just €4,300 (0.4%). Buy-to-flip angle. A buy-to-flip strategy could be viable by enhancing the property's appeal with modern updates to targeted fixtures, thus allowing for a profitable resale when market conditions are favorable. Buy-to-let angle. With a gross yield of 3.9% and an estimated rental income of €3,185 per month, this villa offers solid potential for long-term and short-term vacation rentals in a desirable tourist area.
Fair value modelled at €984,300 from 1 comparable sales in the area. Asking €980,000 sits €4,300 (0.4%) below — the upside to fair value.
Asking €980,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €870,347 (€3,481/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €870,347, adjusted for condition and micro-location, gives a modelled fair value of €984,300 (€3,937/m²), a €4,300 (0.4%) gap versus the €980,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 652fc3 | Subject | €980,000 | €3,920 | — | 73 | 73 |
| parque do Moínho | Active | €815,000 | €3,937 | 0.4% | 74 | 73 |
| Median comp | €815,000 | €3,937 | 0.4% | 74 | 73 |
Short-term vacation rental The property's appeal for short-term vacation rentals aligns with the upscale tourism market in the Algarve region, evidenced by its gross yield of 3.9%. However, given the fair valuation at €980,000, the return potential is only marginally above the market rate. Long-term rental With a neighbourhood rating of 73/100, this villa is well-placed for long-term rental, attracting expats and long-term visitors to the Algarve. The fair value of €984,300 indicates that while the property is appropriately priced, investors should carefully assess cash flow against local rental market fluctuations. Family rental This villa's substantial size and decent condition make it suitable for family rentals, particularly in a region appealing to expatriate communities. The fair valuation suggests that, while it may serve its purpose, potential returns will remain closely aligned with market averages, requiring diligence in operational management to maximize yield.
Economic Fluctuation Risk Given the economic stability score of 68/100, there is a significant risk that fluctuations in the local economy could negatively impact tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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