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.
5-bedroom, 3-bathroom house of 164 m², built in 1991, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features a spacious independent annex, ideal for guests or rental income, alongside an expansive terrace with panoramic views of the lush garden and rural landscape.
The valuation. The asking price of €1,100,000 exceeds the fair value of €852,157 by €247,843 (29.1%), making this property overpriced. Buyers should approach with caution, as the current market valuation does not support the asking price.
Fair value modelled at €852,157 from 5 comparable sales in the area. Asking €1,100,000 sits €247,843 (29.1%) above — overpriced versus fair value.
Asking €1,100,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €766,802 (€4,676/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €766,802, adjusted for condition and micro-location, gives a modelled fair value of €852,157 (€5,196/m²), a €247,843 (29.1%) gap versus the €1,100,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 89e5fc | Subject | €1,100,000 | €6,707 | — | 72 | 76 |
| urbanização Vale da Lama | Active | €1,250,000 | €6,313 | 5.9% | 76 | 67 |
| rua de Santo Amaro, 6 | Active | €620,000 | €5,299 | 21.0% | 70 | 68 |
| Bensafrim e Barão de São João · 4a4347 | Active | €795,000 | €5,196 | 22.5% | 80 | 70 |
| São Gonçalo de Lagos · 956b62 | Active | €420,000 | €3,925 | 41.5% | 75 | 71 |
| Median comp | €707,500 | €5,248 | 21.8% | 76 | 69 |
Short-term vacation rental Given the property is priced at €1,100,000 with a fair value of €852,157, the potential return on investment appears significantly overshadowed by the high asking price. At a gross yield of only 2.9%, this strategy may not provide the financial performance expected in a competitive marketplace driven by tourism. Buy-and-hold The property’s asking price of €1,100,000 exceeds its fair value by 29.1%, resulting in a questionable long-term equity accumulation. This strategy is further compromised by merely average neighborhood ratings and a suboptimal yield of 2.9%. Luxury market Although the property is situated in a sought-after tourist area, its current price point of €1,100,000 illustrates a disconnect from its fair value of €852,157, indicating overpricing. The luxury market's expectations for returns and quality may not be met given the 2.9% yield and the property’s average condition rating of 76/100.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to market fluctuations that could influence rental income and property value.
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