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. Noteworthy Features: The penthouse boasts an exclusive 55 m² terrace equipped with a jacuzzi, offering stunning panoramic views over the sea, river, and city, ideal for relaxation and entertainment.
The valuation. The asking price of €1,290,000 is notably below the fair value of €1,569,878, reflecting a potential savings of €279,878, or 21.7%. This presents a promising opportunity for savvy investors.
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 €1,026,648 (€3,492/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. Full condition report →
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. Full location report →
largo do Rossio de São João Batista, 1
Area baseline €1,026,648 + 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.
Long-term rental With a fair market value of €1,569,878 and a current listing price of €1,290,000, this 3-bed penthouse presents a compelling long-term rental opportunity in a high-demand tourist area. The low crime rate and desirable amenities further bolster its potential for stable tenant retention and consistent rental income. Short-term vacation rental Given the prime location in Algarve, coupled with a significant pricing gap of 21.7% below fair value, this penthouse is well-positioned to capitalize on the thriving short-term vacation rental market. The strong tourism draw and the property's excellent condition make it an attractive investment for vacation visitors seeking high-quality accommodations. Buy-and-hold The attractive price point of €1,290,000, considerably below the fair value estimate, indicates a strong potential for long-term appreciation in this 3-bed penthouse. As the local real estate market continues to thrive due to its favorable location and low crime rates, this property is poised for value growth over time.
Potential Economic Downturn The economic stability score of 75/100 suggests that there could be vulnerabilities in the local economy that might affect tenant demand and rental income adversely in the future.
