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 93 m², built in 1991, energy rating C. Located on rua Frei António da Purificação, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes a balcony with panoramic city views and is situated in a central location, offering convenient access to amenities and the beach.
The valuation. The asking price of €369,000 is €4,084 (1.1%) above the fair value of €364,916. This indicates that the property is overpriced based on current market assessments.
Fair value modelled at €364,916 from the area baseline, adjusted for condition and location. Asking €369,000 sits €4,084 (1.1%) above — overpriced versus fair value.
Asking €369,000 versus the rua Frei António da Purificação area baseline of €365,025 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 77/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Frei António da Purificação
Area baseline €365,025 + condition +€5,086 + location +€35,074 = modelled fair value of €364,916 (€3,924/m²), a €4,084 (1.1%) gap versus the €369,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Frei António da Purificação | Subject | €369,000 | €3,968 | — | 75 | 77 |
| estrada da Meia Praia | Active | €470,000 | €4,653 | 17.3% | 75 | 64 |
| São Gonçalo de Lagos · b7b679 | Active | €895,000 | €3,266 | 17.7% | 85 | 74 |
| São Gonçalo de Lagos · ba3ebe | Active | €520,000 | €3,514 | 11.4% | 73 | 71 |
| São Gonçalo de Lagos · 99f2ab | Active | €449,500 | €3,715 | 6.4% | 80 | 73 |
| Median comp | €495,000 | €3,615 | 8.9% | 78 | 72 |
Short-term vacation rental\nThe property’s price of €369,000 exceeds the fair value of €364,916 by 1.1%, indicating it is overpriced for short-term vacation rental purposes. Despite a 4.5% gross yield, the proximity to tourist activities may not justify the premium cost given the overall market conditions.\n\nLong-term rental\nAt a listing price of €369,000, the property is overvalued compared to its fair value of €364,916, leading to potential concerns for long-term rental viability. With a gross yield of 4.5%, the investment does not present the risk-adjusted return typically sought in long-term rental strategies.\n\nBuy-and-hold\nAlthough the property boasts a reasonable gross yield of 4.5%, its asking price of €369,000 versus a fair value of €364,916 suggests a mispricing that could hinder future appreciation in a buy-and-hold strategy. The growth potential is limited given that this asset is identified as overpriced in the current market scenario.
Economic downturn risk The property may face increased vacancy rates due to a solid economic stability score of 75/100 and a tenant stability score of 70/100, indicating potential susceptibility to market fluctuations.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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