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 apartment of 54 m², energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment's sunroom offers versatile potential for a laundry area or storage, enhancing functionality despite the property's need for modernization.
The valuation. The asking price of €245,000 is significantly above the fair value of €182,138, indicating a difference of €62,862, or 25.7%. This property is clearly overpriced relative to its appraised worth.
Fair value modelled at €182,138 from the area baseline, adjusted for condition and location. Asking €245,000 sits €62,862 (25.7%) above — overpriced versus fair value.
Asking €245,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €188,568 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 50/100 (Condition 45 · Materials 50 · Room dimensions 58). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €188,568 + condition -€21,516 + location +€15,085 = modelled fair value of €182,138 (€3,373/m²), a €62,862 (25.7%) gap versus the €245,000 asking price.
Short-term vacation rental In a region heavily influenced by tourism, the property’s price exceeds fair value by 25.7%, limiting potential profitability and hindering competitiveness in the market. The 4.1% gross yield reflects the challenges of operating within a peak-seasonal rental environment, making this investment less appealing. Long-term rental Given the 25.7% markup from fair value, the attractiveness of securing consistent tenants at a desirable rental rate diminishes, particularly in a fluctuating economy. While the apartment can still function as a long-term rental, the pricing makes it a less compelling option compared to comparable units in the area. Buy-and-hold The significant gap between listing and fair value positions this property unfavorably for long-term appreciation, as it is overpriced by 25.7%. Investing in this unit as a buy-and-hold strategy would likely yield underperformance compared to alternatives in a market characterized by seasonal variances and housing condition issues, rated at 50/100. Not ideal for student housing With the current price exceeding fair value, the property is not conducive to the student housing market, where affordability is critical for tenant retention. Additionally, the apartment's location and size do not meet the demand often required by student populations. Not ideal for luxury market The condition rating of 50/100 suggests that the property lacks the premium features typical in the luxury market segment, making it a less desirable investment. The high listing price further detracts from its attractiveness, positioning it outside of appealing luxury offerings in the region.
Economic volatility risk The economic stability score of 60/100 indicates potential fluctuations in the local economy, which could impact tenant retention and rental income.
