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.
3-bedroom, 2-bathroom penthouse of 294 m², built in 2024, energy rating A+. Located on largo do Rossio de São João Batista, 1, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique feature: The penthouse boasts a magnificent 55 m² exclusive terrace with a jacuzzi, offering unparalleled panoramic views of the Algarve's stunning landscape and over 300 days of sunshine annually.
The valuation. The asking price of €1,290,000 exceeds the fair value of €1,186,596 by €103,404, or 8.0%. This property is thus considered overpriced based on current market analysis.
Fair value modelled at €1,186,596 from the area baseline, adjusted for condition and location. Asking €1,290,000 sits €103,404 (8.0%) above — overpriced versus fair value.
Asking €1,290,000 versus the largo do Rossio de São João Batista, 1 area baseline of €1,153,950 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 88 · Materials 87 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 80/100 (Housing Market 85 · Amenities 80 · Economic 75 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
largo do Rossio de São João Batista, 1
Area baseline €1,153,950 + condition +€36,750 + location +€123,198 = modelled fair value of €1,186,596 (€4,036/m²), a €103,404 (8.0%) gap versus the €1,290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| largo do Rossio de São João Batista, 1 | Subject | €1,290,000 | €4,388 | — | 88 | 80 |
| largo da República | Active | €530,000 | €4,077 | 7.1% | 80 | 69 |
| São Gonçalo de Lagos · 0016aa | Active | €530,000 | €4,077 | 7.1% | 76 | 74 |
| São Gonçalo de Lagos · 1e613a | Active | €650,000 | €3,218 | 26.7% | 80 | 72 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 53.8% | 85 | 71 |
| Median comp | €590,000 | €4,077 | 7.1% | 80 | 72 |
Long-term rental The property in São Gonçalo de Lagos is currently overpriced by 8.0%, making it a less attractive option for long-term rental investment given the zero gross yield. Despite its decent condition and appealing neighborhood, the price is misaligned with fair market value, which could hinder future rental revenue potential. Short-term vacation rental Although this property is situated in a desirable tourist area in Algarve, the 8.0% gap from its fair value indicates it is overpriced for short-term vacation rental strategies. The lack of rental yield further complicates the investment case, suggesting that it may not generate expected returns typical for vacation rentals in the region. Buy-and-hold For a buy-and-hold strategy, the current listing price of €1,290,000 exceeds its fair value by 8.0%, suggesting the property may not appreciate as anticipated over time. The strong local rental demand is offset by the overpriced entry point, potentially limiting profitability in the long run.
Economic downturn risk A slight decrease in the economic stability score from 75 could negatively impact tenant demand and rental income, influencing overall investment returns.
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