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.
2-bedroom, 1-bathroom apartment of 67 m², built in 1980, energy rating E. Located on rua Gago Coutinho, 3, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes electric shutters and double glazing, enhancing both security and energy efficiency in a prime location near the beach and historic center.
The valuation. With an asking price of €350,000, this property sits €94,308 above its fair value of €255,692, indicating it is overpriced by 26.9%. Buyers should consider this discrepancy before pursuing the investment.
Fair value modelled at €255,692 from the area baseline, adjusted for condition and location. Asking €350,000 sits €94,308 (26.9%) above — overpriced versus fair value.
Asking €350,000 versus the rua Gago Coutinho, 3 area baseline of €256,342 (€3,826/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 76 · Materials 73 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua Gago Coutinho, 3
Area baseline €256,342 + condition -€733 + location +€22,461 = modelled fair value of €255,692 (€3,816/m²), a €94,308 (26.9%) gap versus the €350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Gago Coutinho, 3 | Subject | €350,000 | €5,224 | — | 76 | 74 |
| rua Doutor Francisco Sá Carneiro, 4 | Active | €360,000 | €5,000 | 4.3% | 78 | 74 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 21.0% | 75 | 70 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 12.1% | 75 | 67 |
| São Gonçalo de Lagos · 25f45c | Active | €325,000 | €3,652 | 30.1% | 74 | 79 |
| Median comp | €347,500 | €5,427 | 3.9% | 75 | 72 |
Long-term rental The property at €350,000 is overpriced by 26.9% compared to its fair value of €255,692, which limits the potential for long-term rental profitability. With a gross yield of just 3.1%, investors may find better opportunities elsewhere to achieve more favorable returns. Short-term vacation rental Despite the attractive location in a relatively safe area typical of Algarve, the property’s price of €350,000 is significantly higher than its fair value, indicating it is overpriced. The current 3.1% gross yield further suggests that the return on investment for a short-term vacation rental may not justify the elevated entry price. Buy-and-hold Investing in this property as a buy-and-hold strategy is less than ideal due to its 26.9% gap from the fair value of €255,692, designating it as overpriced. While tourism may stabilize the local economy, the inadequate yield of 3.1% makes it unlikely to be a strong candidate for long-term wealth accumulation.
Economic Volatility Risk With an economic stability score of 65/100, the property may be susceptible to fluctuations in the local market, which could impact rental income and property value.
