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 villa of 143 m², built in 2001, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This villa boasts magnificent uninterrupted sea views from all rooms and is strategically designed with main living areas on the upper floor, enhancing the coastal lifestyle experience.
The valuation. The asking price of €985,000 significantly exceeds the fair value of €601,604 by €383,396 (63.7%). This property is considered overpriced, warranting caution for potential investors.
Fair value modelled at €601,604 from 6 comparable sales in the area. Asking €985,000 sits €383,396 (63.7%) above — overpriced versus fair value.
Asking €985,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €554,486 (€3,878/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €554,486, adjusted for condition and micro-location, gives a modelled fair value of €601,604 (€4,207/m²), a €383,396 (63.7%) gap versus the €985,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · f14bc2 | Subject | €985,000 | €6,888 | — | 78 | 71 |
| rua Doutor Faria e Silva S / N | Active | €550,000 | €5,612 | 18.5% | 82 | 73 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 49.0% | 75 | 73 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 49.0% | 75 | 70 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 49.0% | 75 | 66 |
| Median comp | €425,000 | €3,512 | 49.0% | 75 | 72 |
Short-term vacation rental The villa's listing price of €985,000 reflects a significant 63.7% gap from its fair value of €601,604, indicating it is overpriced for a short-term vacation rental investment. At a gross yield of only 2.3%, the property fails to generate the expected return necessary to justify the high initial investment, limiting its attractiveness in the competitive rental market. Long-term rental Given the villa's overpriced status at €985,000 compared to a fair value of €601,604, it presents challenges for long-term rental viability. The low yield of 2.3% and its condition rating of 80/100 suggest that potential rental income will not adequately offset the high purchase price over time. Buy-and-hold The current listing price of €985,000, substantially above its fair value of €601,604, reveals that this property is overpriced for a buy-and-hold strategy. With limited appreciation potential indicated by a 2.3% gross yield, long-term investment returns are likely to be unsatisfactory given the elevated entry cost. Not ideal for This property is not suited for student housing, as the pricing far exceeds the value acceptable for that market segment. It also has no appeal for luxury market investments or industrial development due to its overpriced status and suboptimal yield.
Economic Vulnerability The property is at risk due to its low economic stability score of 55/100, suggesting potential for economic downturns that may impact 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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