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.
1-bedroom, 1-bathroom house of 61 m², built in 1951. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The potential for vertical expansion capitalizes on the existing footprint while the proximity to local shops and the city center enhances daily convenience, despite lacking a use license.
The valuation. The asking price of €250,000 sits €44,375 (15.1%) below the fair value of €294,375, indicating the property is underpriced. This presents a favorable opportunity for potential investors looking to capitalize on a well-valued asset.
Fair value modelled at €294,375 from 6 comparable sales in the area. Asking €250,000 sits €44,375 (15.1%) below — the upside to fair value.
Asking €250,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €308,985 (€5,065/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 is below the parish average, reducing 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 €308,985, adjusted for condition and micro-location, gives a modelled fair value of €294,375 (€4,826/m²), a €44,375 (15.1%) gap versus the €250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 2fcdfe | Subject | €250,000 | €4,098 | — | 65 | 73 |
| São Gonçalo de Lagos · 46801f | Active | €299,000 | €4,902 | 19.6% | 72 | 70 |
| São Gonçalo de Lagos · 83422d | Active | €229,000 | €4,490 | 9.6% | 70 | 75 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 29.7% | 74 | 74 |
| São Gonçalo de Lagos · b329a1 | Active | €475,000 | €4,750 | 15.9% | 64 | 66 |
| Median comp | €309,000 | €4,826 | 17.8% | 71 | 72 |
Short-term vacation rental With a fair value of €294,375, this property is positioned for strong returns as a short-term vacation rental due to its favorable condition rating of 63/100 and a solid gross yield of 4.9%. The location in the tourist-friendly Algarve region further enhances its attractiveness, suggesting a profitable investment opportunity. Buy-and-hold Given its subvalorizada price and the potential for property appreciation in São Gonçalo de Lagos, this investment presents a strategic opportunity for a buy-and-hold approach. The strong local economy influenced by tourism enhances the likelihood of stable rental demand, making it a sound long-term investment. Family rental This property stands out for family rentals due to its reasonably sized layout of 61m² and an appealing neighborhood rating of 73/100, which indicates a desirable living environment. The combination of a competitive that is below fair value and a significant rental market driven by family dynamics positions this investment favorably for tenants seeking longer leases.
Tenant turnover risk High tenant turnover is a possibility considering the tenant stability score of 65/100, which may lead to increased vacancy periods and associated 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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