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, 4-bathroom country_house of 266 m², built in 1951, energy rating E. Located on avenida dos Descobrimentos, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Quinta do Miranda features unique traditional elements such as an ornate dovecote and extensive outdoor stables and kennels, emphasizing its potential for diversified rural living in the Algarve.
The valuation. The asking price of €2,000,000 exceeds the fair value of €1,163,750 by €836,250 (71.9%), categorizing the property as overpriced. The valuation discrepancy suggests potential buyers may need to negotiate significantly. Buy-to-flip angle. Given the property's condition rating of 66/100, a value-add renovation strategy could be employed to enhance its appeal and resale value. Short-term cosmetic updates may yield a higher profit margin upon resale. Buy-to-let angle. The estimated rental income of €3,000/month indicates a gross yield of 1.8%, which is relatively low for a buy-and-hold strategy. However, leveraging its location in a tourist area can support short-term vacation rentals to boost earnings.
Fair value modelled at €1,163,750 from 6 comparable sales in the area. Asking €2,000,000 sits €836,250 (71.9%) above — overpriced versus fair value.
Asking €2,000,000 versus the avenida dos Descobrimentos area baseline of €1,205,083 (€4,530/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 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 €1,205,083, adjusted for condition and micro-location, gives a modelled fair value of €1,163,750 (€4,375/m²), a €836,250 (71.9%) gap versus the €2,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida dos Descobrimentos | Subject | €2,000,000 | €7,519 | — | 58 | 73 |
| rua Marechal Furtado, 26 | Active | €700,000 | €4,375 | 41.8% | 70 | 72 |
| São Gonçalo de Lagos · 956be1 | Active | €1,100,000 | €6,748 | 10.2% | — | 73 |
| rua Marechal Furtado, 26 | Active | €700,000 | €4,375 | 41.8% | 75 | 71 |
| rua Marechal Furtado, 26 | Active | €700,000 | €4,375 | 41.8% | 75 | 73 |
| Median comp | €700,000 | €4,375 | 41.8% | 75 | 73 |
Short-term vacation rental Despite the high tourist demand in Algarve, the property’s listing price of €2,000,000 is significantly above its fair value of €1,163,750, leaving a gap of 71.9%. With a gross yield of only 1.8%, the investment does not justify its valuation in the short-term rental market. Buy-and-hold The property, while situated in a tourism-centric area, presents an overvaluation issue, making it a less attractive buy-and-hold investment at €2,000,000 versus the fair value of €1,163,750. The current yields and high entry cost compromise potential long-term returns, highlighting the 71.9% gap as a significant risk. Value-add renovation Investing in renovations would typically enhance a property’s value, yet at €2,000,000, this 4-bed country house is overpriced compared to its fair value of €1,163,750, indicating minimal room for profitable enhancements. The disparity of 71.9% and the current condition score of 66/100 suggest limited upside potential for over-improvement without sacrificing financial viability. Not ideal for This property is not suited for student housing due to its high price and the seasonal nature of the location, which doesn’t align with steady student occupancy rates. Furthermore, the luxury market is not an ideal fit, as evidenced by the limited yield and increased competition in an overpriced market.
Tenant turnover risk With a tenant stability score of 70/100, there is a 30% chance of tenant turnover, potentially leading to increased vacancy rates and loss of rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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