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, 4-bathroom house of 550 m², energy rating A. Located on rua Jaime Leotte do Rego, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This luxury villa features a bespoke infinity pool with a waterfall and direct sea and countryside views from each en-suite bedroom terrace, enhancing outdoor living and relaxation.
The valuation. The asking price of €2,650,000 is significantly below the fair value of €3,937,225, creating a gap of €1,287,225 (32.7%). This property is clearly underpriced based on its high-quality features and neighborhood attributes.
Fair value modelled at €3,937,225 from 6 comparable sales in the area. Asking €2,650,000 sits €1,287,225 (32.7%) below — the upside to fair value.
Asking €2,650,000 versus the rua Jaime Leotte do Rego area baseline of €3,636,060 (€6,611/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €3,636,060, adjusted for condition and micro-location, gives a modelled fair value of €3,937,225 (€7,159/m²), a €1,287,225 (32.7%) gap versus the €2,650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Jaime Leotte do Rego | Subject | €2,650,000 | €4,818 | — | 90 | 63 |
| rua José Lobo da Veiga, 152 | Active | €2,800,000 | €7,018 | 45.6% | 90 | 76 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 48.6% | 78 | 72 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 48.6% | 78 | 64 |
| parque do Moínho | Active | €2,800,000 | €6,167 | 28.0% | 86 | 73 |
| Median comp | €2,212,500 | €7,089 | 47.1% | 82 | 73 |
Short-term vacation rental This property, situated in a prime tourist area of the Algarve, holds a potential for significant cash flow given its favorable fair value assessment, despite the current zero yield. With a well-maintained condition score of 86/100, it can attract guests looking for high-quality accommodations. Buy-and-hold Investing in this property aligns with long-term appreciation strategies due to its below fair value status, making it a sound decision for those looking to build wealth over time. The current market conditions suggest potential for capital gains, especially in an area driven by seasonal tourism. Family rental The property’s spacious layout and solid condition render it suitable for family rentals, despite the neighbourhood's average score of 63/100. As the tourism-focused economy could provide a steady flow of quality tenants, this strategy may enhance long-term profitability. Not ideal for student housing Given the reliance on a seasonal tourism economy, this property is not well-suited for student housing, which typically demands a year-round resident base. The economic fluctuations inherent to tourist-heavy regions could further complicate consistent tenant acquisition. Not ideal for luxury market Despite the property's upscale features, its positioning within a tourist-centric market limits its appeal to luxury buyers, potentially affecting resale prospects. High-end buyers may be deterred by the neighbourhood's average rankings, preferring areas with robust amenities and stable markets.
Economic and Tenant Stability Risk: With both economic and tenant stability scores at 60/100, there is a significant risk of inconsistent rental income and potential vacancies impacting profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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