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.
3-bedroom, 2-bathroom penthouse of 294 m², built in 2024, energy rating A+. Located on largo do Rossio de São João Batista, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This penthouse offers an exclusive 55 m² terrace with a jacuzzi and panoramic views of the sea, river, and city, enhancing outdoor living and leisure opportunities.
The valuation. The asking price of €1,290,000 exceeds the fair value of €1,145,530 by €144,470 (11.2%), making this property overpriced. This discrepancy raises concerns about potential returns on investment.
Fair value modelled at €1,145,530 from the area baseline, adjusted for condition and location. Asking €1,290,000 sits €144,470 (11.2%) above — overpriced versus fair value.
Asking €1,290,000 versus the largo do Rossio de São João Batista area baseline of €1,153,950 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 (Condition 90 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
largo do Rossio de São João Batista
Area baseline €1,153,950 + condition +€36,750 + location +€82,132 = modelled fair value of €1,145,530 (€3,896/m²), a €144,470 (11.2%) gap versus the €1,290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| largo do Rossio de São João Batista | Subject | €1,290,000 | €4,388 | — | 90 | 70 |
| largo da República | Active | €530,000 | €4,077 | 7.1% | 80 | 69 |
| São Gonçalo de Lagos · 0016aa | Active | €530,000 | €4,077 | 7.1% | 76 | 74 |
| São Gonçalo de Lagos · 1e613a | Active | €650,000 | €3,218 | 26.7% | 80 | 72 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 53.8% | 85 | 71 |
| Median comp | €590,000 | €4,077 | 7.1% | 80 | 72 |
Short-term vacation rental The potential for short-term vacation rentals in Lagos remains strong; however, the property is overpriced at €1,290,000 compared to its fair value of €1,145,530, indicating a gap of 11.2%. Given the yield of 0% gross, the high entry price discourages long-term profitability in this seasonal and tourism-dependent market. Buy-and-hold With a fair value of €1,145,530 against the listing price of €1,290,000, the property does not present an attractive buy-and-hold opportunity as it is overpriced by 11.2%. The ongoing economic stability in the Algarve's tourist-heavy zone does not justify the elevated investment cost, limiting the potential for significant appreciation over time.
Moderate economic and tenant instability The scores of 65/100 for both economic and tenant stability indicate a moderate risk, suggesting potential fluctuations in property income and tenant reliability over time.
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