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, 5-bathroom villa of 643 m², built in 2021, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This villa features a spectacular rooftop terrace, offering uninterrupted panoramic views of the ocean and coastline, perfect for entertaining or relaxing in the Algarve sun.
The valuation. The asking price of €7,000,000 is significantly above the fair value of €4,557,627, indicating an overpriced property by €2,442,373 (53.6%). Buy-to-flip angle. Given the high asking price, a quick resale may not yield profitable margins unless substantial improvements are made to justify higher pricing. Buy-to-let angle. With a gross yield of 0%, the property may not be ideal for generating rental income, putting pressure on long-term holding strategies instead.
Fair value modelled at €4,557,627 from 6 comparable sales in the area. Asking €7,000,000 sits €2,442,373 (53.6%) above — overpriced versus fair value.
Asking €7,000,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €4,033,139 (€6,272/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 94/100 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 €4,033,139, adjusted for condition and micro-location, gives a modelled fair value of €4,557,627 (€7,088/m²), a €2,442,373 (53.6%) gap versus the €7,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 53ca63 | Subject | €7,000,000 | €10,886 | — | 92 | 67 |
| rua Baden Powell | Active | €2,195,000 | €5,433 | 50.1% | 90 | 70 |
| São Gonçalo de Lagos · 101b0a | Active | €2,200,000 | €7,190 | 34.0% | 85 | 75 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 34.2% | 78 | 72 |
| São Gonçalo de Lagos · 1440f0 | Active | €1,575,000 | €5,899 | 45.8% | 80 | 71 |
| Median comp | €1,910,000 | €6,529 | 40.0% | 83 | 72 |
Long-term rental The property is overpriced at €7,000,000 compared to its fair value of €4,557,627, indicating a significant 53.6% gap. With a gross yield of 0%, the investment does not align with typical long-term rental performance expectations in the area. Short-term vacation rental Given the property's price of €7,000,000, which exceeds its fair value by 53.6%, it does not present a financially sound opportunity for short-term vacation rentals. Additionally, the lack of yield and the average neighborhood rating of 67/100 suggest limited potential for appealing to vacationers. Buy-and-hold With an asking price of €7,000,000 and a fair value of €4,557,627, this investment is clearly overpriced by 53.6%, diminishing its potential for a profitable buy-and-hold strategy. The combination of zero yield and a mediocre neighborhood quality further dissuades holding the property for future appreciation.
Economic Vulnerability The economic stability score of 60/100 indicates potential vulnerability to economic downturns, which may affect rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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