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, 1-bathroom apartment of 75 m², built in 2004. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features a private balcony with a built-in barbecue, perfect for outdoor dining, and is situated in a secure condominium with landscaped areas and a pool.
The valuation. The asking price of €385,000 is significantly above fair value, which is estimated at €297,927, representing an excess of €87,073 (22.6%). The property is considered overpriced based on market comparisons.
Fair value modelled at €297,927 from the area baseline, adjusted for condition and location. Asking €385,000 sits €87,073 (22.6%) above — overpriced versus fair value.
Asking €385,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €261,900 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 78 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €261,900 + condition +€8,789 + location +€27,238 = modelled fair value of €297,927 (€3,972/m²), a €87,073 (22.6%) gap versus the €385,000 asking price.
Short-term vacation rental Given the strong demand for rentals in Algarve, the property’s prime location could attract tourists, potentially justifying the current price point. However, with a fair value significantly lower than the listing price and a yield of only 3.7%, the property is not an attractive investment for short-term rentals. Long-term rental Although long-term rentals in this tourist-heavy area could provide consistent income, the current asking price exceeds the fair market value by 22.6%. The lower yield of 3.7% suggests that even with high demand, the property is overpriced and may not deliver optimal returns for investors. Buy-and-hold While the Neighbourhood rating of 76/100 indicates a reasonable quality area, the current listing price far exceeds its fair value, presenting a risk for long-term investment. Additionally, the property's yield of 3.7% does not compensate for the substantial gap from fair market value, making it a less favourable buy-and-hold strategy. Not ideal for student housing The property’s current value and yield do not align with the demands typical of student housing markets, where affordability and yield are crucial. With high listing prices and limited rental yield, this property is not suitable for a student housing strategy. Not ideal for luxury market The property does not meet the luxury market expectations either in terms of aesthetics or pricing given its condition rating of 83/100 and the significant gap against fair value. Therefore, it is not positioned to attract high-end buyers or renters, making it unsuitable for a luxury market approach.
Potential Economic Fluctuations The economic stability score of 70/100 indicates moderate economic conditions, which could lead to potential fluctuations in rental demand and tenant turnover.
