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.
7-bedroom, 8-bathroom house of 938 m², built in 1900, energy rating C. Located on avenida dos Descobrimentos, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a private chapel for meditation and spirituality, and a climate-controlled wine cellar ideal for enthusiasts.
The valuation. The asking price of €27,000,000 significantly exceeds the fair value of €3,676,960, representing an overvaluation of €23,323,040 (634.3%). This property is overpriced, making it a poor investment choice. Buy-to-flip angle. A potential buy-to-flip strategy would involve renovations to enhance its appeal, then reselling in the luxury market, but given the current valuation, the profit margins are unlikely to justify the costs. Buy-to-let angle. As a buy-to-let investment, this property is not attractive due to a gross yield of 0%, indicating no rental income potential, undermining long-term investment viability.
Fair value modelled at €3,676,960 from 6 comparable sales in the area. Asking €27,000,000 sits €23,323,040 (634.3%) above — overpriced versus fair value.
Asking €27,000,000 versus the avenida dos Descobrimentos area baseline of €3,098,372 (€3,303/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €3,098,372, adjusted for condition and micro-location, gives a modelled fair value of €3,676,960 (€3,920/m²), a €23,323,040 (634.3%) gap versus the €27,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida dos Descobrimentos | Subject | €27,000,000 | €28,785 | — | 90 | 71 |
| São Gonçalo de Lagos · 6fbc10 | Active | €1,100,000 | €3,667 | 87.3% | 75 | 73 |
| São Gonçalo de Lagos · 652fc3 | Active | €980,000 | €3,920 | 86.4% | 73 | 73 |
| São Gonçalo de Lagos · 19f4d6 | Active | €980,000 | €3,920 | 86.4% | 70 | 70 |
| São Gonçalo de Lagos · b32794 | Active | €980,000 | €3,920 | 86.4% | 70 | 69 |
| Median comp | €980,000 | €3,920 | 86.4% | 72 | 72 |
Short-term vacation rental The property, listed at €27,000,000, appears to be an unsuitable investment for short-term vacation rentals due to its significant 634.3% gap from the fair value of €3,676,960. Additionally, with a 0% gross yield, the financial potential is not aligned with the expectations of the lucrative Algarve tourist market. Long-term rental Investing in long-term rental for this property is not advisable, as it is overpriced at €27,000,000 while the fair value is €3,676,960, indicating a 634.3% discrepancy. The absence of a gross yield further highlights the unviability of generating sustainable rental income in this economically influenced tourist area. Buy-and-hold The buy-and-hold strategy is not suitable for this property given its €27,000,000 listing price, which starkly contrasts with the fair value of €3,676,960, creating a 634.3% gap that makes it overpriced. Moreover, with a gross yield of 0%, holding this investment could lead to prolonged financial stagnation rather than growth in a tourism-driven market.
Moderate Economic Risk The economic stability score of 65/100 suggests potential fluctuations in market conditions that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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