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 apartment of 80 m², built in 2002, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment includes a large south-facing balcony with a built-in barbecue and a second west-facing balcony providing additional outdoor space and sheltered views.
The valuation. The asking price of €380,000 is significantly above fair value, which is assessed at €317,258, resulting in an overvaluation of €62,742 (16.5%). This positions the apartment as overpriced in the current market. Buy-to-flip angle. A potential short-term vacation rental strategy could capitalize on the prime Algarve location, targeting the lucrative tourist market for a quick resale post-renovation. This approach aims to enhance the property's value through targeted upgrades. Buy-to-let angle. The estimated rental income of €1,235/month yields a gross rate of 3.9%, making it a suitable buy-and-hold investment. The appealing aesthetics and location promise consistent demand from tenants seeking quality accommodation in a tourist-friendly area.
Fair value modelled at €317,258 from the area baseline, adjusted for condition and location. Asking €380,000 sits €62,742 (16.5%) above — overpriced versus fair value.
Asking €380,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €279,360 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 76 · Materials 79 · Room dimensions 80). 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.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €279,360 + condition +€4,375 + location +€33,523 = modelled fair value of €317,258 (€3,966/m²), a €62,742 (16.5%) gap versus the €380,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 956963 | Subject | €380,000 | €4,750 | — | 76 | 80 |
| São Gonçalo de Lagos · 9569fb | Active | €350,000 | €4,217 | 11.2% | 76 | 78 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 4.2% | 75 | 72 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 4.2% | 80 | 73 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 33.1% | 75 | 70 |
| Median comp | €412,500 | €4,948 | 4.2% | 76 | 73 |
Short-term vacation rental The 1-bed apartment in São Gonçalo de Lagos, currently listed at €380,000, is overpriced given its fair value of €317,258, resulting in a notable gap of 16.5%. While the prime Algarve location attracts tourists, the gross yield of 3.9% does not justify the high asking price, making this investment less attractive in the short-term rental market. Buy-and-hold Investing in this property as a buy-and-hold strategy is challenged by its overvaluation at €380,000 compared to a fair value of €317,258, leading to a significant 16.5% gap. Despite the neighborhood amenities and a solid condition rating of 79/100, the anticipated returns are insufficient to warrant such a premium price, posing long-term investment risks. Value-add renovation The potential for value-add renovation in this 1-bed apartment seems muted, given its listing price of €380,000 versus a fair value of €317,258 and a gap of 16.5%. Although renovations can enhance property value, the current overpricing diminishes the likelihood of recovering renovation costs, making it a less appealing option for investors looking to unlock value through improvements.
Economic downturn risk A slight decline in the economic stability score to 75/100 may impact tenant demand, potentially leading to increased vacancy rates.
