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.
5-bedroom, 6-bathroom house of 367 m² on the 1st floor, built in 2005, energy rating B. Located on rua Filarmónica Primeiro de Maio, 8, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property boasts a stunning pool area with a waterfall feature, nestled within a mature garden, enhancing the villa's romantic and inviting atmosphere.
The valuation. The asking price of €1,600,000 is slightly above the fair value of €1,584,126, sitting at €15,874 (1.0%) over. This property is reasonably priced and reflects the current market conditions.
Fair value modelled at €1,584,126 from 6 comparable sales in the area. Asking €1,600,000 sits €15,874 (1.0%) above — overpriced versus fair value.
Asking €1,600,000 versus the rua Filarmónica Primeiro de Maio, 8 area baseline of €1,503,563 (€4,097/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €1,503,563, adjusted for condition and micro-location, gives a modelled fair value of €1,584,126 (€4,316/m²), a €15,874 (1.0%) gap versus the €1,600,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Filarmónica Primeiro de Maio, 8 | Subject | €1,600,000 | €4,360 | — | 82 | 69 |
| São Gonçalo de Lagos · efdc53 | Active | €1,395,000 | €4,713 | 8.1% | 85 | 63 |
| São Gonçalo de Lagos · a80aeb | Active | €1,430,000 | €3,803 | 12.8% | 80 | 74 |
| rua João Bráz, 3 | Active | €2,575,000 | €4,877 | 11.9% | 80 | 77 |
| São Gonçalo de Lagos · 76b48a | Active | €1,395,000 | €4,810 | 10.3% | 90 | 72 |
| Median comp | €1,412,500 | €4,762 | 9.2% | 83 | 73 |
Short-term vacation rental The property is situated in the Algarve region, a prominent tourist destination, which could drive demand for short-term vacation rentals, particularly during peak seasons. However, the gross yield of 2.4% suggests that the property's income potential may be limited relative to other investment opportunities in the area. Buy-and-hold Although the listing price of €1,600,000 is close to the fair value of €1,584,126, indicating it is fairly priced, the overall yield is moderate at 2.4%. This may not provide significant appreciation potential to justify a long-term investment hold strategy, especially given the seasonal nature of the local economy. Long-term rental The property’s valuation is fair at €1,600,000, with a slight 1.0% gap to the estimated fair value, which means long-term rental performance may align with market expectations. Nonetheless, the gross yield of 2.4% reflects low rental returns, which could deter long-term investment in this particular property. Not ideal for luxury market The property’s condition rating of 78/100 suggests it may not meet the high standards expected in the luxury market, potentially limiting its appeal to high-net-worth individuals. Thus, investing in this segment may not yield the desired returns due to inherent competition from better-quality offerings. Not ideal for student housing The locality does not exhibit strong demand patterns for student housing due to its positioning as a vacation destination with seasonal employment. As a result, turning this property into student accommodations may not generate a stable occupancy rate, impacting overall cash flow.
Economic Vulnerability With an economic stability score of 60/100, there is a risk that fluctuations in the local economy could negatively impact rent prices and occupancy rates.**
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