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, 0-bathroom house of 174 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This residence features spacious terraces designed for optimal sunset viewing, along with a fully equipped outdoor kitchen enhancing the appeal for luxurious outdoor entertaining.
The valuation. The asking price of €825,000 sits €137,312 (16.6%) above the fair value of €687,688. This property is considered overpriced relative to its fair market value.
Fair value modelled at €687,688 from the area baseline, adjusted for condition and location. Asking €825,000 sits €137,312 (16.6%) above — overpriced versus fair value.
Asking €825,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €682,950 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €682,950 + condition +€21,750 + location +€58,330 = modelled fair value of €687,688 (€3,952/m²), a €137,312 (16.6%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 388ce6 | Subject | €825,000 | €4,741 | — | 80 | 74 |
| São Gonçalo de Lagos · ba3e34 | Active | €410,000 | €5,256 | 10.9% | 80 | 78 |
| São Gonçalo de Lagos · 956cba | Active | €400,000 | €3,922 | 17.3% | 75 | 76 |
| São Gonçalo de Lagos · 261f51 | Active | €399,500 | €5,790 | 22.1% | 75 | 71 |
| rua Doutor Faria e Silva S / N | Active | €550,000 | €5,612 | 18.4% | 82 | 73 |
| Median comp | €405,000 | €5,434 | 14.6% | 78 | 75 |
Short-term vacation rental The property is overpriced by 16.6%, making the potential for a profitable short-term rental dubious given its gross yield of only 2.8%. Additionally, while the location near the Algarve coast may attract tourists, the high entry cost limits overall investment feasibility. Buy-and-hold Investing in this property for long-term appreciation is untenable, considering the 16.6% gap above fair value and the low gross yield of 2.8%. The prevailing market conditions suggest that the growth prospects may not justify the current price, meaning returns could be compromised over time. Family rental At a listing price of €825,000, this property does not represent an attractive family rental opportunity due to its significant overvaluation of 16.6% compared to fair value. Even with a decent condition rating of 83/100, the expected rental income does not align with the investment required, making it an unfavorable option for families looking for long-term housing. Not ideal for: Student housing, Luxury market, Industrial property Given its pricing and property class, this listing is not suited for student housing or the luxury market, where demand dynamics and pricing elasticity differ significantly. Furthermore, the property does not cater to the industrial sector, which typically requires different specifications and economic drivers.
Economic Stress Risk With an economic stability score of 65/100, there's an increased risk of market fluctuations that could adversely affect property value and tenant demand.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
