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.
4-bedroom, 6-bathroom house of 376 m², built in 2006, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The property includes an independent 1-bedroom apartment, currently a wine cellar, perfect for guests or rental income, along with a rooftop terrace offering panoramic sea views.
The valuation. The asking price of €1,430,000 sits below the fair value of €1,772,027, representing a discount of €342,027 (19.3%). This position indicates that the property is underpriced in the current market.
Fair value modelled at €1,772,027 from 5 comparable sales in the area. Asking €1,430,000 sits €342,027 (19.3%) below — the upside to fair value.
Asking €1,430,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,603,007 (€4,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €1,603,007, adjusted for condition and micro-location, gives a modelled fair value of €1,772,027 (€4,713/m²), a €342,027 (19.3%) gap versus the €1,430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · a80aeb | Subject | €1,430,000 | €3,803 | — | 80 | 74 |
| São Gonçalo de Lagos · efdc53 | Active | €1,395,000 | €4,713 | 23.9% | 85 | 63 |
| São Gonçalo de Lagos · 4d475e | Active | €1,225,000 | €3,480 | 8.5% | 80 | 73 |
| jardim das Calicas | Active | €1,595,000 | €5,145 | 35.3% | 83 | 72 |
| parque do Moínho | Active | €815,000 | €3,937 | 3.5% | 74 | 73 |
| Median comp | €1,310,000 | €4,325 | 13.7% | 82 | 73 |
Short-term vacation rental This property in Lagos, with a fair value that is 19.3% higher than the listing price, presents a compelling opportunity in the short-term vacation rental market, capitalizing on the Algarve's strong tourism demand. With a gross yield of 4%, owners can benefit from seasonal rental income while the area's amenities and tenant quality enhance attraction to holidaymakers. Long-term rental While the gross yield of 4% indicates moderate returns, the property’s fair value suggests that it is subpriced which could lead to price appreciation over time in the robust rental market of Lagos. Given the neighbourhood's solid score of 74/100, the property is poised to attract long-term tenants seeking quality housing in a desirable location. Buy-and-hold This 4-bed house within a popular tourist region is well-positioned for long-term capital appreciation, especially given the fair value being significantly higher than the asking price. The combination of a favorable economic context driven by seasonal tourism and a strong neighbourhood rating supports a buy-and-hold strategy as a prudent investment choice. Not ideal for Due to the property’s valuation dynamics and local market conditions, this house is not suitable for student housing, as demand patterns do not align with stable long-term rental preferences. Moreover, it is not a fit for the luxury market or industrial development, which are incompatible with the property's characteristics and location.
Potential Vacancy Risk With an Economic stability score of 65/100 and a Tenant stability score of 70/100, there is a heightened risk of vacancy due to potential fluctuations in economic conditions and tenant reliability.
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