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, 2-bathroom apartment of 130 m², built in 2009, energy rating A. Located on largo da República, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment boasts a spacious balcony with unobstructed views, perfect for enjoying the Algarve sun, and includes a private parking space as well as a substantial storage room.
The valuation. The asking price of €530,000 is above the fair value of €501,461, representing an overprice of €28,539 (5.4%). This indicates that the property is not in alignment with its market value.
Fair value modelled at €501,461 from the area baseline, adjusted for condition and location. Asking €530,000 sits €28,539 (5.4%) above — overpriced versus fair value.
Asking €530,000 versus the largo da República area baseline of €510,250 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 82 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 65 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
largo da República
Area baseline €510,250 + condition +€13,000 + location +€34,501 = modelled fair value of €501,461 (€3,857/m²), a €28,539 (5.4%) gap versus the €530,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| largo da República | Subject | €530,000 | €4,077 | — | 80 | 69 |
| largo do Rossio de São João Batista, 1 | Active | €1,290,000 | €4,388 | 7.6% | 88 | 80 |
| rua do Barinel | Active | €475,000 | €4,060 | 0.4% | 72 | 74 |
| urbanização Vila Branca | Active | €395,000 | €4,031 | 1.1% | 80 | 70 |
| largo do Rossio de São João Batista | Active | €1,290,000 | €4,388 | 7.6% | 90 | 70 |
| Median comp | €882,500 | €4,224 | 3.6% | 84 | 72 |
Short-term vacation rental The property is overpriced at €530,000 compared to its fair value of €501,461, resulting in a 5.4% gap. With a gross yield of 3.3%, the current investment does not align with strong vacation rental returns typically sought after in this tourism-heavy region. Long-term rental At a listing price of €530,000, the investment opportunity presents a yield of just 3.3%, which does not justify the premium over the fair market value of €501,461. Given the property's overpriced status, long-term rental prospects may struggle to attract quality tenants in the current market. Buy-and-hold The property, listed at €530,000, exceeds its fair value by 5.4%, diminishing its appeal for a buy-and-hold strategy. The lower yield of 3.3% suggests that potential capital appreciation is unlikely to compensate for the initial investment in this overvalued property.
Tenant turnover risk A tenant stability score of 70/100 suggests that while tenants are generally stable, there is still a significant 30% potential for turnover, which could lead to increased vacancy rates and costs.
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