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, 3-bathroom country_house of 300 m², built in 1951, energy rating F. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy features: This property includes a registered tank that can be converted into a swimming pool, enhancing its appeal and potential for leisure activities. Investment potential: With 42,258 m² of land, the property offers ample space for diverse uses or future development opportunities.
The valuation. The asking price of €790,000 sits €216,163 above the fair value of €573,837, indicating that the property is overpriced by 37.7%. Therefore, potential investors should approach with caution regarding this investment.
Fair value modelled at €573,837 from 5 comparable sales in the area. Asking €790,000 sits €216,163 (37.7%) above — overpriced versus fair value.
Asking €790,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €758,613 (€2,529/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 45/100 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 €758,613, adjusted for condition and micro-location, gives a modelled fair value of €573,837 (€1,913/m²), a €216,163 (37.7%) gap versus the €790,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 144024 | Subject | €790,000 | €2,633 | — | 42 | 70 |
| estrada da Meia Praia | Active | €1,150,000 | €2,277 | 13.5% | — | 70 |
| herdade do Funchal | Active | €850,000 | €1,889 | 28.3% | 70 | 73 |
| São Gonçalo de Lagos · dc15b2 | Active | €329,000 | €1,913 | 27.4% | 58 | 72 |
| ab71fa | Active | €1,495,000 | €3,222 | 22.4% | 75 | 70 |
| Median comp | €1,000,000 | €2,095 | 20.4% | 70 | 71 |
Short-term vacation rental\nWith a fair value of €573,837, the property is overpriced at €790,000, creating a 37.7% gap that makes it less attractive for the short-term vacation rental market. Additionally, its gross yield of 0% in a tourism-driven economy raises concerns about profitability given that seasonal population fluctuations can significantly affect rental demand.\n\nLong-term rental\nThe property is overpriced at €790,000 compared to its fair value of €573,837, which diminishes its appeal for long-term rental investment. Furthermore, with a condition rating of 45/100 and a tenant quality score of 70/100, maintaining consistent rental income may prove challenging in the current housing market.\n\nBuy-and-hold\nAs a buy-and-hold investment, this property is overpriced at €790,000, creating a significant gap from the fair value of €573,837 that may limit future appreciation. The condition rating of 45/100 also suggests that additional capital expenditures may be necessary to enhance its value over time, further compounding the investment's drawbacks.
Tenant turnover risk High tenant turnover could occur due to a tenant stability score of 65/100, indicating potential volatility in lease renewals and occupancy rates.
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