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 villa of 452 m², built in 2018, energy rating A. Located on rua Eusébio da Silva Ferreira, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This villa features an outdoor kitchen with a professional barbecue and seating area, complemented by a low-maintenance garden surrounding a 10 x 3.5 m swimming pool.
The valuation. The asking price of €2,650,000 is significantly below fair value of €3,235,683, indicating a difference of €585,683 (18.1%). Thus, the property is currently underpriced. Buy-to-flip angle. This villa can be renovated and subsequently resold at a higher price point, leveraging the Algarve's desirability to attract buyers and capitalize on market demand, aiming for a substantial profit margin. Buy-to-let angle. With its high-quality finishes and appealing location, the villa could serve as an attractive short-term vacation rental, capitalizing on the region’s tourism influx for steady rental income despite current yield projection being 0%.
Fair value modelled at €3,235,683 from 5 comparable sales in the area. Asking €2,650,000 sits €585,683 (18.1%) below — the upside to fair value.
Asking €2,650,000 versus the rua Eusébio da Silva Ferreira area baseline of €2,881,884 (€6,376/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 91/100 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 €2,881,884, adjusted for condition and micro-location, gives a modelled fair value of €3,235,683 (€7,159/m²), a €585,683 (18.1%) gap versus the €2,650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Eusébio da Silva Ferreira | Subject | €2,650,000 | €5,863 | — | 91 | 72 |
| São Gonçalo de Lagos · 1440f0 | Active | €1,575,000 | €5,899 | 0.6% | 80 | 71 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 22.1% | 78 | 72 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 22.1% | 78 | 64 |
| parque do Moínho | Active | €2,800,000 | €6,167 | 5.2% | 86 | 73 |
| Median comp | €1,625,000 | €6,663 | 13.6% | 79 | 72 |
Short-term vacation rental This villa's proximity to the Algarve's popular tourism destinations makes it ideal for short-term vacation rentals, with a strong demand for holiday accommodation. Given its fair value of €3,235,683 compared to the listing price of €2,650,000, this property represents an enticing opportunity for investors focusing on the lucrative short-term rental market. Buy-and-hold Investing in this villa offers a solid buy-and-hold strategy, particularly with the favorable economic conditions bolstered by tourism in the Algarve region. The substantial gap of 18.1% from its fair value indicates that this asset will appreciate over time, providing a robust long-term investment potential. Family rental The villa's size and favorable condition score of 91/100 make it an appealing option for family rentals, where space and quality are paramount. With a strong local economy and amenities appealing to families, the property is well-positioned for sustained rental demand despite the current yield of 0% gross.
Potential Tenant Turnover Tenants may be less stable due to the economic stability score of 60/100, increasing the risk of turnover and associated vacancy costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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