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 141 m², energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Private terrace with BBQ area and sea view offering a perfect space for outdoor entertaining and relaxation, enhancing the appeal for both permanent residents and vacation rentals.
The valuation. The asking price of €399,000 sits below the fair value of €515,388, representing a discount of €116,388 (22.6%). This property is considered underpriced, presenting an appealing investment opportunity.
Fair value modelled at €515,388 from 6 comparable sales in the area. Asking €399,000 sits €116,388 (22.6%) below — the upside to fair value.
Asking €399,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €482,220 (€3,420/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €482,220, adjusted for condition and micro-location, gives a modelled fair value of €515,388 (€3,655/m²), a €116,388 (22.6%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · a6d519 | Subject | €399,000 | €2,830 | — | 75 | 71 |
| rua do Poço | Active | €319,000 | €4,493 | 58.8% | 75 | 68 |
| rua do Poço S / N | Active | €395,000 | €3,798 | 34.2% | 70 | 74 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 24.1% | 73 | 73 |
| jardim da Meia Praia | Active | €425,000 | €3,512 | 24.1% | 73 | 71 |
| Median comp | €410,000 | €3,655 | 29.2% | 73 | 72 |
Short-term vacation rental This property in São Gonçalo de Lagos has a strong potential for short-term vacation rentals, given its proximity to tourist attractions and a fair market gap of 22.6%. The 5.6% gross yield reflects the capable rental demand, positioning it well for maximizing short-term income. Long-term rental With a fair value significantly above the listing price, this property offers a compelling opportunity for long-term rental investments in a neighborhood with developed amenities. The solid yield of 5.6% suggests a stable cash flow, meeting the needs of both residents and visitors alike. Buy-and-hold Investing in this 2-bed house as a buy-and-hold strategy aligns with the fair value indication that places it below market expectations by 22.6%. The combination of a decent condition rating and attractive yield provides a promising long-term appreciation potential in an area driven by tourism.
Economic and Tenant Stability Risk With both economic stability and tenant stability scores at 65/100, there is a risk of potential fluctuations in rental income and tenant turnover 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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