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.
1-bedroom, 1-bathroom apartment of 56 m² on the 3rd floor, built in 1981, energy rating E. Located on rua dos Peixeiros, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This top-floor apartment features a private 6m² rooftop terrace, perfect for sunset views over Lagos Bay, enhancing its appeal as an outdoor living space.
The valuation. The asking price of €400,000 is significantly above its fair value of €214,818, reflecting a 46.3% premium. This property is deemed overpriced based on current market conditions.
Fair value modelled at €214,818 from the area baseline, adjusted for condition and location. Asking €400,000 sits €185,182 (46.3%) above — overpriced versus fair value.
Asking €400,000 versus the rua dos Peixeiros area baseline of €195,552 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 65 · Materials 72 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 80/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 90). Strong amenities and housing-market momentum support a premium to baseline.
rua dos Peixeiros
Area baseline €195,552 + condition -€4,200 + location +€23,466 = modelled fair value of €214,818 (€3,836/m²), a €185,182 (46.3%) gap versus the €400,000 asking price.
Short-term vacation rental The property is overpriced at €400,000, with a fair value estimated at €214,818, indicating a 46.3% gap. While the Algarve's seasonal housing market appears robust, the low gross yield of 2.6% suggests it may struggle to attract enough high-paying vacation renters. Luxury market Given its current listing price, this property is not ideally positioned for the luxury market segment despite its attractive location in Lagos. The 2.6% yield and significant gap from fair value indicate a pricing misalignment that may deter discerning luxury buyers. Long-term rental Although the neighbourhood boasts an 80/100 rating, making it suitable for long-term tenants, the valuation at €400,000 is excessive compared to the fair value of €214,818. The 2.6% yield further supports the conclusion that the property is overpriced for long-term rental investment purposes.
Economic Vulnerability Despite a strong tenant stability score of 90/100, the economic stability score of 70/100 indicates potential risks related to local economic fluctuations that could impact rental income.
