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, 1-bathroom house of 50 m², built in 1984, energy rating F. Located on travessa da Coroa, 11, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a closed balcony that could be converted into an additional bathroom and features modern tilt-and-turn windows for enhanced ventilation and light.
The valuation. The asking price of €275,000 is significantly above fair value, which is estimated at €182,943, resulting in an overpricing of €92,057 or 33.5% above market norms. Buy-to-flip angle. A resale strategy could capitalize on the potential for renovations to improve overall value, aiming for a higher return in a vibrant tourist market. Buy-to-let angle. With an estimated rental income of €1,077/month, the property offers a gross yield of 4.7%, providing a steady cash flow for long-term investment despite its current overvaluation.
Fair value modelled at €182,943 from the area baseline, adjusted for condition and location. Asking €275,000 sits €92,057 (33.5%) above — overpriced versus fair value.
Asking €275,000 versus the travessa da Coroa, 11 area baseline of €196,250 (€3,925/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 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
travessa da Coroa, 11
Area baseline €196,250 + condition -€5,625 + location +€13,968 = modelled fair value of €182,943 (€3,659/m²), a €92,057 (33.5%) gap versus the €275,000 asking price.
Short-term vacation rental The property is positioned in a high-demand tourist area in the Algarve, which could support short-term rental strategies. However, with a fair value of €182,943 and a listing price of €275,000, the property is overpriced by 33.5%, limiting potential profitability in this segment. Value-add renovation While the property has a decent condition rating of 68/100, the gap between its listing price and fair value suggests that any investment in renovations would need to ensure substantial increases in property value. Given the current market, with the property being overpriced, this strategy may not yield the desired return on investment. Long-term rental A gross yield of 4.7% is below attractive thresholds for long-term holding when the purchase price exceeds fair market value. The overpriced status of this property at €275,000 risks reducing profitability and cash flow in long-term rental scenarios. Not ideal for: The property is not suited for student housing due to moderate access to schools and lacks appeal for the luxury market given its condition and pricing, which already leans on the overpriced side. Additionally, this property's profile is unlikely to attract interest for industrial development in the current neighborhood context.
Tenant turnover risk The tenant stability score of 60/100 suggests a potential risk of high tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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