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 penthouse of 172 m² on the 4th floor, built in 2007, energy rating C. Located on rua Professor Doutor Mota Pinto, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The penthouse includes a newly renovated kitchen with marble countertops and wine cellar, and boasts two balconies with stunning views of the city and sea.
The valuation. The asking price of €540,000 is significantly below the fair value of €677,300, resulting in an attractive difference of €137,300 (25.4%). This property is underpriced and presents a compelling investment opportunity.
Fair value modelled at €677,300 from the area baseline, adjusted for condition and location. Asking €540,000 sits €137,300 (25.4%) below — the upside to fair value.
Asking €540,000 versus the rua Professor Doutor Mota Pinto area baseline of €671,660 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 85 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 78/100 (Housing Market 80 · Amenities 85 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Professor Doutor Mota Pinto
Area baseline €671,660 + condition +€9,406 + location +€67,270 = modelled fair value of €677,300 (€3,938/m²), a €137,300 (25.4%) gap versus the €540,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Professor Doutor Mota Pinto | Subject | €540,000 | €3,140 | — | 80 | 78 |
| São Gonçalo de Lagos · 99f380 | Active | €480,000 | €2,840 | 9.5% | 78 | 67 |
| parque do Moínho | Active | €345,000 | €2,379 | 24.2% | 70 | 75 |
| São Gonçalo de Lagos · 0902e1 | Active | €389,000 | €3,242 | 3.3% | 68 | 71 |
| São Gonçalo de Lagos · 6d5147 | Active | €372,000 | €3,179 | 1.3% | 72 | 73 |
| Median comp | €380,500 | €3,010 | 4.1% | 71 | 72 |
Short-term vacation rental The property in São Gonçalo de Lagos, priced at €540,000, is subvalued compared to its fair value of €677,300, presenting an attractive opportunity for short-term vacation rental in a highly sought-after tourist region. With a gross yield of 4.5% and favorable neighborhood scores, it aligns well with high demand from both domestic and international tourists. Long-term rental Offering strong potential for long-term rental, the penthouse benefits from a robust market context in Algarve with a noteworthy fair value gap of 25.4%. The property’s good condition and average neighborhood score indicate sustained rental demand, ensuring steady cash flow for future investors. Buy-and-hold As a buy-and-hold investment, this property demonstrates significant appreciation potential given its current pricing of €540,000 versus a fair value of €677,300, alongside a healthy gross yield of 4.5%. The favorable market dynamics in a tourist-oriented economy should enhance property value over time, making it a compelling investment for long-term capital growth.
Economic vulnerability With an economic stability score of 70, there is a notable potential risk associated with fluctuations in the local economy that could negatively impact property values. Tenant turnover risk The tenant stability score of 75 suggests a moderate risk of tenant turnover, which could affect cash flow and rental income predictability in the future.
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