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.
1-bedroom, 1-bathroom apartment of 47 m², energy rating D. Located on travessa da Cerca do Cemitério, 5, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique Feature: The apartment includes a private outdoor terrace, enhancing leisure space while being just a short walk from the beach and vibrant local amenities.
The valuation. The asking price of €205,000 is significantly above the fair value of €160,864, indicating a premium of €44,136, or 21.5%. This property is considered overpriced, reflecting limited justification for the asking price.
Fair value modelled at €160,864 from the area baseline, adjusted for condition and location. Asking €205,000 sits €44,136 (21.5%) above — overpriced versus fair value.
Asking €205,000 versus the travessa da Cerca do Cemitério, 5 area baseline of €164,124 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 50/100 (Condition 55 · Materials 50 · Room dimensions 55). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 78 · Amenities 75 · Economic 65 · Tenant Quality 69). Strong amenities and housing-market momentum support a premium to baseline.
travessa da Cerca do Cemitério, 5
Area baseline €164,124 + condition -€18,359 + location +€15,099 = modelled fair value of €160,864 (€3,423/m²), a €44,136 (21.5%) gap versus the €205,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| travessa da Cerca do Cemitério, 5 | Subject | €205,000 | €4,362 | — | 55 | 73 |
| São Gonçalo de Lagos · dee532 | Active | €245,000 | €4,537 | 4.0% | 45 | 70 |
| rua de Santo Amaro, 18 | Active | €280,000 | €4,308 | 1.2% | 65 | 72 |
| São Gonçalo de Lagos · 6d552c | Active | €340,000 | €6,800 | 55.9% | 60 | 73 |
| parque do Moínho | Active | €375,000 | €4,310 | 1.2% | 65 | 67 |
| Median comp | €310,000 | €4,424 | 1.4% | 63 | 71 |
Short-term vacation rental While the property is located in the Algarve, a popular tourist region, the 21.5% gap from the fair value suggests it is overpriced for short-term investments. The yield of 5.2% gross does not compensate for the elevated price, limiting profitability potential in the vacation rental market. Long-term rental Despite a decent neighbourhood rating of 73/100, the property being overpriced at €205,000 means it may struggle to deliver consistent returns as a long-term rental. The yield of 5.2% gross may not justify the investment in a property that is already above its fair value. Buy-and-hold As a buy-and-hold investment, this property is not ideal due to its overpriced status, which exceeds the fair value by 21.5%. The combination of a lower condition score of 50/100 and the inflated price could hinder long-term appreciation prospects. Not ideal for: Student housing, Luxury market, Value-add renovation Given the property’s condition and pricing, it is ill-suited for student housing, luxury market appeals, or value-add renovations that typically require a better initial valuation to offer significant returns. These strategies do not align with the current gap between the asking price and fair value.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of fluctuations that could adversely affect property value and tenant demand.
