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. This property features a private chapel for meditation and a climate-controlled wine cellar designed for wine enthusiasts.
The valuation. The asking price of €27,000,000 significantly exceeds the calculated fair value of €3,676,960, marking a staggering difference of €23,323,040, or 634.3%. This property is clearly overpriced, lacking any justification for such a premium.
Fair value modelled at €3,676,960 from 5 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 €3,086,546 (€3,291/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 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 €3,086,546, 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 | — | 85 | 73 |
| 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 · 956b00 | Active | €1,500,000 | €5,034 | 82.5% | 75 | 71 |
| Median comp | €1,040,000 | €3,920 | 86.4% | 74 | 72 |
Short-term vacation rental With a staggering 634.3% gap from its fair value, the property at €27,000,000 represents a significant risk in the short-term vacation rental market, as the yield is currently 0%. The high initial investment would not align with demand trends and return frequently associated with such rentals in the Algarve region. Long-term rental The excessive price point of €27,000,000 is out of sync with the fair value of €3,676,960, resulting in an impractical option for long-term rental purposes with no current yield. This investment would likely fail to attract quality tenants, given the steep rental prices compared to available amenities in the neighbourhood. Buy-and-hold Considering the property is priced 634.3% above fair value, investing in this 7-bed house as a buy-and-hold strategy would yield minimal returns and significant financial pressure. The current market conditions do not support an appreciation trajectory that could result in acceptable long-term capital gains in this central Algarve location, supporting a verdict of overpriced.
Economic Vulnerability The property's economic stability score of 65/100 indicates potential exposure to fluctuations in the local economy, which may lead to instability in rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
