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 82 m², built in 2010, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment includes a private underground parking space and a top-floor storage room, enhancing convenience and value for residents in a premium location. Location: Encosta da Marina offers easy access to Meia Praia and Lagos Marina, ideal for an active lifestyle.
The valuation. The asking price of €480,000 sits significantly above the fair value of €309,019, indicating it is overpriced by €170,981 or 35.6%. This excessive valuation raises concerns regarding the investment potential. Buy-to-flip angle. A resale strategy would involve marketing the apartment to potential buyers seeking a high-quality property in the Algarve area, although the current pricing may limit profitability. Quick renovations are not necessary due to solid condition ratings. Buy-to-let angle. With an estimated rental income of €1,440 per month, the gross yield is relatively modest at 3.6%. While the property is appealing, the rental income may not justify the high purchase price for long-term investors.
Fair value modelled at €309,019 from the area baseline, adjusted for condition and location. Asking €480,000 sits €170,981 (35.6%) above — overpriced versus fair value.
Asking €480,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €321,850 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 75 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €321,850 + condition +€3,203 + location +€19,471 = modelled fair value of €309,019 (€3,769/m²), a €170,981 (35.6%) gap versus the €480,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 49b696 | Subject | €480,000 | €5,854 | — | 75 | 67 |
| rua Doutor Francisco Sá Carneiro, 4 | Active | €360,000 | €5,000 | 14.6% | 78 | 74 |
| urbanização Marina Marina de Lagos | Active | €665,000 | €4,750 | 18.9% | 82 | 66 |
| urbanização Marina Park | Active | €550,000 | €4,783 | 18.3% | 71 | 72 |
| São Gonçalo de Lagos · 956963 | Active | €380,000 | €4,750 | 18.9% | 76 | 80 |
| Median comp | €465,000 | €4,767 | 18.6% | 77 | 73 |
Short-term vacation rental Given the high asking price of €480,000, with a fair value of €309,019, this property is positioned in an overcrowded rental market where yields are relatively low at 3.6%. The location in a typical Algarve resort area may attract tourists, but the current valuation does not support a favorable investment return. Long-term rental While the property may seem appealing for long-term rental due to its decent condition rating of 78/100, the significant price gap indicates that it is overpriced at €480,000. Even though the neighborhood score of 67/100 suggests a reasonable tenant demographic, the low yield of 3.6% hampers the investment potential substantially.
Tenant turnover risk The tenant stability score of 60/100 suggests a moderate risk of tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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