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 house of 78 m², built in 2001, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property boasts a delightful private patio with laundry facilities and a charming terrace featuring a pergola, ideal for enjoying Lagos' sunny climate.
The valuation. The asking price of €410,000 is significantly above the fair value of €311,413, representing an overpriced situation by €98,587 (24.0%). This property does not present itself as a financially sound investment based on current valuations.
Fair value modelled at €311,413 from the area baseline, adjusted for condition and location. Asking €410,000 sits €98,587 (24.0%) above — overpriced versus fair value.
Asking €410,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €272,376 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 78/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €272,376 + condition +€8,531 + location +€30,506 = modelled fair value of €311,413 (€3,992/m²), a €98,587 (24.0%) gap versus the €410,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · ba3e34 | Subject | €410,000 | €5,256 | — | 80 | 78 |
| São Gonçalo de Lagos · de0c60 | Active | €319,000 | €5,317 | 1.1% | 74 | 74 |
| São Gonçalo de Lagos · 261f51 | Active | €399,500 | €5,790 | 10.1% | 75 | 71 |
| rua do Poço | Active | €319,000 | €4,493 | 14.5% | 75 | 68 |
| São Gonçalo de Lagos · 388ce6 | Active | €825,000 | €4,741 | 9.8% | 80 | 74 |
| Median comp | €359,250 | €5,029 | 4.3% | 75 | 73 |
Short-term vacation rental The property is not ideal for short-term vacation rental given its gross yield of just 2.9% against a fair value benchmark that indicates it is overpriced by 24.0%. With the property listing at €410,000 compared to a fair value of €311,413, the financial implications for short-term rental returns are unfavorable. Buy-and-hold Investing in this property as a buy-and-hold strategy seems precarious due to its 24.0% gap from fair value, suggesting that the initial investment is excessive. Additionally, while the neighborhood scores well in condition and amenities, the economic stability influenced by seasonal employment creates uncertainty regarding future appreciation. Long-term rental As a long-term rental investment, this property is less appealing since it is overpriced at €410,000 versus a fair value of €311,413, yielding only 2.9%. Given the fluctuating demand driven by tourism and potential tenant quality issues, long-term rental income may not justify the high purchase price in this market. Not ideal for This property is not suited for student housing or the luxury market, as its pricing and potential yield do not align with the expected performance in these segments. Consequently, seeking tenants in these categories may prove challenging and financially unproductive.
Economic-Contraction Risk A score of 75 for economic stability indicates potential vulnerabilities in the local economy that could impact rental income and property values during downturns.
