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, 6-bathroom villa of 290 m², built in 2022, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The villa boasts a high-end matte cabinetry aesthetic complemented by exquisite designer bathroom tiles, enhancing its luxury appeal. Outdoor Amenities: The property features a spacious terrace and landscaped gardens ideal for entertaining.
The valuation. The asking price of €1,395,000 is significantly below the fair value of €2,075,991, indicating an impressive undervaluation of €680,991 or 32.8%. This presents a favorable opportunity for investors seeking value.
Fair value modelled at €2,075,991 from 6 comparable sales in the area. Asking €1,395,000 sits €680,991 (32.8%) below — the upside to fair value.
Asking €1,395,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,973,000 (€6,803/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €1,973,000, adjusted for condition and micro-location, gives a modelled fair value of €2,075,991 (€7,159/m²), a €680,991 (32.8%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 76b48a | Subject | €1,395,000 | €4,810 | — | 90 | 72 |
| São Gonçalo de Lagos · 101b0a | Active | €2,200,000 | €7,190 | 49.5% | 85 | 75 |
| São Gonçalo de Lagos · 53ca63 | Active | €7,000,000 | €10,886 | 126.3% | 92 | 67 |
| São Gonçalo de Lagos · efdc53 | Active | €1,395,000 | €4,713 | 2.0% | 85 | 63 |
| rua João Bráz, 3 | Active | €2,575,000 | €4,877 | 1.4% | 80 | 77 |
| Median comp | €2,387,500 | €6,034 | 25.4% | 85 | 71 |
Short-term vacation rental The property presents an attractive opportunity as a short-term vacation rental given its location in a premier tourist destination with low crime rates, indicating a safe environment for guests. With a gross yield of 3% and a fair value that significantly exceeds the listing price, this investment strategy can capitalize on the high demand for coastal accommodations in São Gonçalo de Lagos. Buy-and-hold Investing in this property as a buy-and-hold asset offers great potential, as it is currently listed at €1,395,000 while its fair market value stands at €2,075,991, representing a substantial gap. This underpriced villa, with a condition score of 84/100, allows for strong long-term appreciation in the thriving Algarve market. Value-add renovation Pursuing a value-add renovation strategy could enhance the attractiveness and rental income potential of this property, given its high condition rating and the existing disparity between its listing and fair value. With strategic upgrades, the villa could significantly increase its market position while also delivering a return on investment due to the robust demand in the region. Not ideal for the luxury market Although it offers quality in terms of condition, this property may not align with the luxury market demands due to its location and rental yield profile. Its current pricing reflects better suitability for broader segments rather than high-end clientele. Not ideal for student housing The villa's features and location do not cater well to student housing requirements, making it an unlikely fit for this demographic. Given the property’s profile as a vacation rental, it is best suited to attract seasonal tourists rather than long-term student renters.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk due to potential fluctuations in the local economy that could impact rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
