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, 1-bathroom house of 104 m², built in 1967, energy rating D. Located on rua do Poço S / N, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This property includes a barbecue area and a storage annex, enhancing the outdoor versatility for gatherings and practical storage needs.
The valuation. The asking price of €395,000 sits slightly below the fair value of €416,729, representing a difference of €21,729 (5.2%). This property is fairly valued, making it an appealing option for potential buyers.
Fair value modelled at €416,729 from 6 comparable sales in the area. Asking €395,000 sits €21,729 (5.2%) below — the upside to fair value.
Asking €395,000 versus the rua do Poço S / N area baseline of €414,948 (€3,990/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €414,948, adjusted for condition and micro-location, gives a modelled fair value of €416,729 (€4,007/m²), a €21,729 (5.2%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Poço S / N | Subject | €395,000 | €3,798 | — | 70 | 74 |
| rua da Bela Vista | Active | €420,000 | €3,925 | 3.3% | 70 | 78 |
| São Gonçalo de Lagos · f5eac3 | Active | €985,000 | €1,791 | 52.8% | — | 71 |
| São Gonçalo de Lagos · b7c37e | Active | €437,500 | €4,089 | 7.7% | 62 | 74 |
| São Gonçalo de Lagos · ade69a | Active | €850,000 | €3,812 | 0.4% | 65 | 71 |
| Median comp | €643,750 | €3,869 | 1.9% | 65 | 73 |
Short-term vacation rental The property’s location in the Algarve, a region known for its tourist popularity, aligns well with a short-term vacation rental strategy, yet the investment yield of 4.8% suggests limited excess cash flow. Given the fair valuation relative to rental demand, the moderate yield indicates that while it may provide stable income, significant price appreciation is not expected. Buy-and-hold Implementing a buy-and-hold strategy may yield steady returns, but with the property’s fair value of €416,729 and a rental yield of 4.8%, investors should prepare for minimal appreciation or cash flow growth over time. The neighborhood’s average school quality could hinder long-term tenant demand, limiting potential for value increase. Value-add renovation The current condition rating of 68/100 suggests that there are opportunities for renovation, yet the fair valuation at €395,000 implies that returns on investment from renovations may be constrained. Investors should carefully evaluate the cost of improvements against the expected increase in rental yield to ensure a reasonable return. Not ideal for This property is not ideal for student housing due to the average local amenities and school quality, which may not attract a reliable tenant base. Additionally, the luxury market and industrial investment strategies are unsuitable given the property’s market positioning and lack of demand for such niches in the area.
Potential Tenant Turnover Risk The economic stability score of 65/100 and tenant stability score of 65/100 indicate potential fluctuations in tenant occupancy, which may lead to increased vacancy rates and decreased 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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