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 284 m², built in 2005. Located Bensafrim e Barão de São João parish, Lagos municipality, Faro district. This villa features a landscaped outdoor area that enhances privacy and offers ample space for entertaining, while maintaining a well-preserved structure throughout.
The valuation. The asking price of €675,000 sits below the fair value of €909,324, indicating the property is underpriced by €234,324 (25.8%). This presents a unique opportunity for an investor to acquire a valued asset at a competitive rate.
Fair value modelled at €909,324 from 6 comparable sales in the area. Asking €675,000 sits €234,324 (25.8%) below — the upside to fair value.
Asking €675,000 versus the Bensafrim e Barão de São João, Lagos, Faro area baseline of €700,969 (€2,468/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €700,969, adjusted for condition and micro-location, gives a modelled fair value of €909,324 (€3,202/m²), a €234,324 (25.8%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Bensafrim e Barão de São João · 2d83d0 | Subject | €675,000 | €2,377 | — | 70 | 71 |
| Bensafrim e Barão de São João · 787ffe | Active | €575,000 | €2,875 | 21.0% | 74 | 66 |
| via Algarviana | Active | €385,000 | €1,974 | 16.9% | 70 | 62 |
| Bensafrim e Barão de São João · 652fe5 | Active | €725,000 | €3,021 | 27.1% | 62 | 70 |
| Bensafrim e Barão de São João · 3df540 | Active | €400,000 | €3,279 | 37.9% | 73 | 70 |
| Median comp | €487,500 | €2,948 | 24.0% | 72 | 68 |
Short-term vacation rental The property at €675,000 is significantly underpriced compared to its fair value of €909,324, offering an attractive opportunity for short-term vacation rentals. Given the region's tourism-driven economy, this villa can yield profitable returns by capitalizing on the continuous demand for rental properties in the Algarve. Buy-and-hold At a 25.8% gap from its fair value, this villa presents a compelling buy-and-hold investment in a location likely to appreciate due to the strong local economy. Investors can benefit from long-term valuation growth while enjoying the villa's current compelling price point. Family rental With a fair value assessment of €909,324, the property is well-positioned for family rentals, catering to those seeking longer-term residency in a family-friendly location. Its spacious layout and favorable conditions make it an attractive option for families, despite the current zero gross yield. Not ideal for: Student housing, Luxury market Given its valuation and location dynamics, the property is not suitable for student housing or positioning in the luxury market segments, which typically require higher yield expectations and a different tenant demographic.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 65/100, there is a heightened risk of fluctuating rental income and potential vacancies, which may impact overall investment returns.
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