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.
3-bedroom, 4-bathroom house of 267 m², built in 2018, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property includes a spectacular rooftop terrace that offers panoramic views, making it an ideal location for sunset relaxation or entertaining guests in a sunny environment.
The valuation. The asking price of €1,575,000 sits €317,514 (16.8%) below the fair value of €1,892,514, suggesting the property is subpriced in the current market. This discrepancy presents a favorable investment opportunity.
Fair value modelled at €1,892,514 from 6 comparable sales in the area. Asking €1,575,000 sits €317,514 (16.8%) below — the upside to fair value.
Asking €1,575,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,719,753 (€6,441/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 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 €1,719,753, adjusted for condition and micro-location, gives a modelled fair value of €1,892,514 (€7,088/m²), a €317,514 (16.8%) gap versus the €1,575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 1440f0 | Subject | €1,575,000 | €5,899 | — | 80 | 71 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 21.4% | 78 | 72 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 21.4% | 78 | 64 |
| parque do Moínho | Active | €2,800,000 | €6,167 | 4.6% | 86 | 73 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 21.4% | 75 | 74 |
| Median comp | €1,625,000 | €7,159 | 21.4% | 78 | 73 |
Short-term vacation rental The property presents a lucrative opportunity for short-term vacation rentals, given its prime location in the Algarve region, which is favored by tourists. With a fair value significantly higher than the listing price, the potential for substantial returns aligns well with the area's seasonal tourism dynamics. Long-term rental Investing in this property for long-term rental purposes is attractive due to its solid condition rating of 87/100 and the demand in the neighborhood, which scores 71/100. The notable gap between the listing and fair value suggests promising long-term appreciation in a region influenced by expat and tourist needs. Family rental The property could effectively serve as a family rental, thanks to its spacious layout and favorable condition. Given the competitive pricing relative to its fair value, it presents a strong proposition for families looking to settle in a desirable area of Lagos while benefiting from the local amenities. Not ideal for luxury market This property is not aligned with luxury market standards, despite its appealing features, as it does not cater to high-end expectations. Its current valuation does not support a strategy focused on the luxury segment, limiting potential in that sector. Not ideal for student housing The property is unsuitable for student housing, considering the neighborhood dynamics and the market's reliance on seasonal tourism. Its structure and appeal do not meet the needs of the student demographic, making this a less favorable investment direction.
Economic Volatility Risk The property faces potential rent volatility due to both economic and tenant stability scores being at 65/100, indicating a moderate risk of fluctuating demand and income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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