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 penthouse of 98 m², built in 2005, energy rating B. Located on urbanização Vila Branca, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This penthouse includes a balcony with a built-in barbecue, ideal for outdoor entertaining while enjoying views of the community pool and landscaped gardens.
The valuation. The asking price of €395,000 is above the fair value of €378,934, resulting in a premium of €16,066 (4.1%). This indicates the property is overpriced.
Fair value modelled at €378,934 from the area baseline, adjusted for condition and location. Asking €395,000 sits €16,066 (4.1%) above — overpriced versus fair value.
Asking €395,000 versus the urbanização Vila Branca area baseline of €384,650 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 82 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Vila Branca
Area baseline €384,650 + condition +€9,341 + location +€27,377 = modelled fair value of €378,934 (€3,867/m²), a €16,066 (4.1%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Vila Branca | Subject | €395,000 | €4,031 | — | 80 | 70 |
| rua do Barinel | Active | €475,000 | €4,060 | 0.7% | 72 | 74 |
| largo da República | Active | €530,000 | €4,077 | 1.1% | 80 | 69 |
| São Gonçalo de Lagos · 0016aa | Active | €530,000 | €4,077 | 1.1% | 76 | 74 |
| rua Frei António da Purificação | Active | €369,000 | €3,968 | 1.6% | 75 | 77 |
| Median comp | €502,500 | €4,069 | 0.9% | 76 | 74 |
Short-term vacation rental The 2-bed penthouse in São Gonçalo de Lagos may not be a suitable investment for short-term vacation rentals, as it is overpriced at €395,000 compared to the fair value of €378,934. With a gross yield of only 2.9%, the property fails to meet the return expectations typical for the competitive Algarve tourism market. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable given its current listing price of €395,000, which exceeds the fair value of €378,934 by 4.1%. This premium, combined with a modest yield of 2.9%, suggests that long-term appreciation may not be sufficient to justify the investment. Family rental Acquiring this property for family rental purposes appears less attractive due to its overpricing at €395,000, which is above the fair value of €378,934. The average neighborhood ratings and the limited yield of 2.9% indicate that the investment may not generate a favorable return over time.
[Economic vulnerability] With an economic stability score of 65/100, the property may face challenges during economic downturns, potentially impacting rental income and tenant retention.
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