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, 1-bathroom house of 51 m², built in 1970. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This home boasts a traditional stone annex with a fireplace, perfect for outdoor gatherings, and a serene backyard filled with fruit trees and privacy from neighbors.
The valuation. The asking price of €229,000 sits just €3,611 (1.6%) above the fair value of €225,389, indicating that the property is fairly valued and reflects the market trends of the area. Buy-to-flip angle. With its good condition and desirable location in a tourist-heavy area, a buy-to-flip strategy could entail cosmetic upgrades targeting vacation homebuyers, potentially achieving a faster resale. Buy-to-let angle. A buy-to-let strategy appears promising, providing an estimated gross yield of 5.4% with a potential rental income of about €1,031 per month, leveraging the area's demand for short-term vacation rentals.
Fair value modelled at €225,389 from 6 comparable sales in the area. Asking €229,000 sits €3,611 (1.6%) above — overpriced versus fair value.
Asking €229,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €226,418 (€4,440/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €226,418, adjusted for condition and micro-location, gives a modelled fair value of €225,389 (€4,419/m²), a €3,611 (1.6%) gap versus the €229,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 83422d | Subject | €229,000 | €4,490 | — | 70 | 75 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 18.4% | 74 | 74 |
| São Gonçalo de Lagos · 46801f | Active | €299,000 | €4,902 | 9.2% | 72 | 70 |
| São Gonçalo de Lagos · b329a1 | Active | €475,000 | €4,750 | 5.8% | 64 | 66 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 21.8% | 75 | 66 |
| Median comp | €372,000 | €4,826 | 7.5% | 73 | 68 |
Short-term vacation rental This property is ideally positioned in a tourist-heavy area of Algarve, appealing to visitors seeking a getaway near Albufeira. With a fair valuation and a good gross yield of 5.4%, it presents a consistent opportunity for income generation through short-term rentals. Buy-and-hold Holding this property in Lagos can be justified given its fair valuation and positive neighborhood rating of 75/100. While the condition at 69/100 indicates room for improvement, the stable tourism-driven economy suggests a potential for long-term appreciation. Luxury market The house’s location in a prime tourism area offers the potential to target the luxury market segment effectively, benefitting from the influx of affluent tourists. Despite being priced fairly, the property does not showcase the high-end features typically sought after in the luxury sector, limiting its appeal in this competitive market.
Economic and Tenant Stability Risk Both the economic stability score of 70 and the tenant stability score of 70 suggest a moderate risk, indicating potential fluctuations in income or occupancy rates that could affect overall property performance negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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