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, 2-bathroom apartment of 63 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes two balconies that enhance natural light and provide diverse urban and sea views, significantly contributing to its charm and appeal for leisure or rental. Unique Selling Point: Its proximity to D. Ana Beach and the city center makes it ideal for tourism-related investments.
The valuation. The asking price of €245,000 is above fair value at €234,225, indicating an overvaluation of €10,775 (4.4%). This discrepancy suggests potential challenges in achieving a profitable sale at this price point.
Fair value modelled at €234,225 from the area baseline, adjusted for condition and location. Asking €245,000 sits €10,775 (4.4%) above — overpriced versus fair value.
Asking €245,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €219,996 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 65 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 77 · Amenities 80 · Economic 70 · Tenant Quality 68). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €219,996 + condition -€6,891 + location +€21,120 = modelled fair value of €234,225 (€3,718/m²), a €10,775 (4.4%) gap versus the €245,000 asking price.
Short-term vacation rental With a gross yield of 6%, the property presents an opportunity for short-term vacation rentals, but it is overpriced by 4.4% compared to fair value. Additionally, the condition and neighborhood scores suggest it may attract some seasonal tourism demand, although the price point is concerning. Long-term rental Given the current listing price of €245,000, the property is overpriced by 4.4%, which could limit rental returns in a long-term rental scenario. The neighborhood's decent score of 74/100 may support consistent occupancy, but the elevated price diminishes overall investment appeal. Buy-and-hold The property is priced at €245,000, which represents a 4.4% premium over its fair value, indicating it may not provide optimal long-term capital appreciation. While located in a desirable tourist area, the high initial cost could hinder potential value growth in the buy-and-hold strategy. Not ideal for The property is clearly not ideal for student housing, as the high price limits the economic accessibility for students. Additionally, the luxury market strategy is unsuitable due to its location and condition, which do not justify the premium price. Value-add renovation Considering that the property is listed above fair value, pursuing a value-add renovation strategy is not advisable. The existing condition score of 68/100 suggests that enhancements may not provide sufficient ROI given the current market overpricing.
Economic-tenant risk: The combined scores of 70/100 for economic stability and 68/100 for tenant stability suggest a moderate risk of economic fluctuations affecting tenant stability, potentially leading to vacancies or turnover.
