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, 2-bathroom country_house of 75 m². Located on rua da Alegria, 3, Odiáxere parish, Lagos municipality, Faro district. Noteworthy Features: This property includes a mezzanine for versatile living arrangements and offers scenic terrace views of both Monchique and the historic Odíaxere windmill.
The valuation. The asking price of €250,000 sits €47,242 below fair value of €297,242, representing a 15.9% underpricing. This presents an advantageous entry point in the market for potential investors.
Fair value modelled at €297,242 from 6 comparable sales in the area. Asking €250,000 sits €47,242 (15.9%) below — the upside to fair value.
Asking €250,000 versus the rua da Alegria, 3 area baseline of €254,892 (€3,399/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €254,892, adjusted for condition and micro-location, gives a modelled fair value of €297,242 (€3,963/m²), a €47,242 (15.9%) gap versus the €250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Alegria, 3 | Subject | €250,000 | €3,333 | — | 72 | 69 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 5.4% | 75 | 66 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 5.4% | 75 | 70 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 5.4% | 75 | 73 |
| 225bf6 | Active | €550,000 | €6,044 | 81.3% | 75 | 75 |
| Median comp | €425,000 | €3,512 | 5.4% | 75 | 72 |
Short-term vacation rental The property is appealing for short-term vacation rentals due to its strategic location in the tourism-centric Algarve region, supported by a robust yield of 6% gross. The 15.9% gap to fair value indicates strong potential for increased cash flow from holidaymakers seeking accommodations in Odiáxere, Lagos. Buy-and-hold Investing in this property as a buy-and-hold strategy makes sense given the steady demand for holiday homes in the area, which can leverage its fair value significantly over time. The neighborhood's score of 69/100 suggests good long-term investment viability, especially as tourism continues to thrive in the region. Value-add renovation With a current condition rating of 77/100, there is clear opportunity for value-add renovations that could enhance the property's appeal and market price. Renovating could ultimately help close the 15.9% gap to fair value while increasing rental income by attracting more guests looking for premium accommodations. Not ideal for luxury market This property does not fit the luxury market segment due to its pricing and neighborhood characteristics, which are more geared towards affordable vacation stays. Focusing on renovation or enhancement strategies would yield better returns than attempting to position it as a luxury offering. Not ideal for Student housing Given the property's location and neighborhood profile, it is unsuitable for student housing as the demand swings heavily toward short-term vacation rentals and not long-term leases. The tourism-driven economy in the region suggests a higher likelihood of yield from transient guests than from students. Not ideal for Industrial use The property’s setting in Odiáxere, Lagos, does not lend itself to industrial use, reflecting a mismatch with local economic activity focused on tourism. Investing in industrial applications here would be misaligned with market demand and could likely result in poor financial performance.
Economic Vulnerability The property faces potential risks due to its economic stability score of 60/100, indicating possible susceptibility to downturns that could affect occupancy rates and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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