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 house of 366 m², built in 2005, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. The property features a spacious heated pool with a waterfall, surrounded by manicured Mediterranean landscaping and expansive terraces that offer stunning countryside views.
The valuation. The asking price of €1,600,000 is 9.1% below the fair value of €1,760,586, positioning the property accurately at a fair valuation. This enhances its attractiveness for potential buyers willing to invest in a quality asset.
Fair value modelled at €1,760,586 from 5 comparable sales in the area. Asking €1,600,000 sits €160,586 (9.1%) below — the upside to fair value.
Asking €1,600,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €1,656,082 (€4,525/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €1,656,082, adjusted for condition and micro-location, gives a modelled fair value of €1,760,586 (€4,810/m²), a €160,586 (9.1%) gap versus the €1,600,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 51ce08 | Subject | €1,600,000 | €4,372 | — | 80 | 70 |
| São Gonçalo de Lagos · a80aeb | Active | €1,430,000 | €3,803 | 13.0% | 80 | 74 |
| parque do Moínho | Active | €1,430,000 | €3,803 | 13.0% | 76 | 71 |
| São Gonçalo de Lagos · 76b48a | Active | €1,395,000 | €4,810 | 10.0% | 90 | 72 |
| São Gonçalo de Lagos · 0c0611 | Active | €1,799,000 | €6,312 | 44.4% | 75 | 68 |
| Median comp | €1,430,000 | €4,307 | 1.5% | 78 | 72 |
Long-term rental The property in São Gonçalo de Lagos offers a gross yield of 3.4%, which aligns with rental expectations in the Algarve region. However, the limited local employment diversity poses risks to tenant stability over the long term. Short-term vacation rental Given the strong tourism appeal of the Algarve, this property may attract vacation renters, albeit at a 9.1% gap from fair value. The overall condition and neighborhood ratings suggest that while it can generate income, it comes with moderate risk due to the local economic landscape. Buy-and-hold While the property is currently listed at €1,600,000, fair value estimates indicate it is priced fairly in relation to future growth potential in the tourism sector. Investors should consider the moderate future appreciation prospects due to economic reliance on tourism, which could affect long-term value stability.
Economic and Tenant Instability Risk With both economic and tenant stability scores at 65/100, there is a heightened risk of inconsistent rental income due to potential fluctuations in local job markets and tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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