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. This penthouse features a stylish north-facing balcony off the bedrooms, providing serene views and excellent natural light, complemented by built-in wardrobes for optimal storage.
The valuation. The asking price of €540,000 is significantly below the fair value of €899,931, creating a disparity of €359,931 (66.7%). This property is considered underpriced in the current market conditions.
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 €600,624 (€3,492/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. Full condition report →
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. Full location report →
rua Professor Doutor Mota Pinto
Area baseline €600,624 + 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.
Short-term vacation rental The property is currently listed at €540,000, compared to a fair value estimate of €899,931, indicating a significant market opportunity with a 66.7% gap. With a gross yield of 4.5% and located in a prime tourist area of Algarve, this penthouse is poised for strong short-term rental performance. Long-term rental At €540,000, the property represents a compelling investment for long-term rental, considering its fair value of €899,931, creating a 66.7% buffer against market fluctuations. Given its condition rating of 79/100 and favorable neighborhood score of 78/100, this penthouse is likely to attract quality tenants in a desirable location. Buy-and-hold With the property priced at €540,000 versus a fair value of €899,931, there is a clear long-term investment opportunity with a 66.7% discrepancy suggesting potential appreciation. The location's strong tourist orientation and the penthouse's good condition and neighborhood ratings make it an attractive buy-and-hold option for capital growth in the future.
Economic Vulnerability The economic stability score of 70 indicates potential fluctuations in property demand or rental income due to economic changes.
