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 102 m², built in 2017, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features a chic private terrace perfect for relaxation and entertaining, paired with energy-efficient solar water heating enhancing its modern appeal.
The valuation. The asking price of €400,000 is €1,195 (0.3%) above its fair value of €398,805, indicating that the property is overpriced. This slight premium does not justify the current listing in the context of market dynamics.
Fair value modelled at €398,805 from the area baseline, adjusted for condition and location. Asking €400,000 sits €1,195 (0.3%) above — overpriced versus fair value.
Asking €400,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €400,350 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €400,350 + condition +€5,578 + location +€37,043 = modelled fair value of €398,805 (€3,910/m²), a €1,195 (0.3%) gap versus the €400,000 asking price.
Short-term vacation rental The property is priced at €400,000, which exceeds its fair value by 0.3%, suggesting that it may be challenging to achieve a strong return on investment in this sector. With a gross yield of only 2.9% and a condition rating of 79/100, the property is less appealing for short-term vacation rental opportunities in the competitive Algarve market. Buy-and-hold Investing in this property as a buy-and-hold strategy appears limited given the €400,000 listing price, which is only slightly above the fair value of €398,805. The potential for long-term appreciation is compromised by a minimal gap from fair value alongside a low gross yield of 2.9%, indicating limited cash flow potential. Luxury market Despite being in the picturesque Algarve region, the property is overpriced at €400,000, only marginally above its fair value of €398,805, which diminishes its appeal in the luxury market. The relatively low yield of 2.9% and decent condition rating (79/100) suggest that this property may not attract affluent buyers looking for prime luxury investments.
Economic vulnerability The economic stability score of 65/100 indicates potential fluctuations in the local market that could adversely affect rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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