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.
3-bedroom, 2-bathroom apartment of 174 m², energy rating A. Located on rua Raul Brandäo, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Highlight: Situated within a luxury resort, this apartment features exclusive access to premium amenities including a spa with sauna and Turkish bath, enhancing the overall living experience.
The valuation. The asking price of €980,000 exceeds the fair value of €665,814 by €314,186 (32.1%). This property is clearly overpriced, presenting a financial risk for investors seeking fair market opportunities.
Fair value modelled at €665,814 from the area baseline, adjusted for condition and location. Asking €980,000 sits €314,186 (32.1%) above — overpriced versus fair value.
Asking €980,000 versus the rua Raul Brandäo area baseline of €682,950 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 90 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Raul Brandäo
Area baseline €682,950 + condition +€21,750 + location +€36,456 = modelled fair value of €665,814 (€3,827/m²), a €314,186 (32.1%) gap versus the €980,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Raul Brandäo | Subject | €980,000 | €5,632 | — | 80 | 65 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 19.8% | 80 | 68 |
| urbanização Senhora Gloria, 30 | Active | €475,000 | €5,793 | 2.8% | 80 | 78 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 19.8% | 85 | 71 |
| largo da República | Active | €530,000 | €4,077 | 27.6% | 80 | 69 |
| Median comp | €815,000 | €6,271 | 11.3% | 80 | 70 |
Short-term vacation rental The property’s high asking price of €980,000, compared to a fair value of €665,814, indicates it may not generate a favorable return for short-term vacation rentals given its 2.8% gross yield. Additionally, the seasonal nature of tourism in Algarve can further complicate rental income stability, making this an imprudent investment. Long-term rental At a gross yield of 2.8%, the apartment is overpriced compared to its fair value, suggesting that long-term rental returns may not justify the initial investment. Furthermore, the limited educational facilities and seasonal economic fluctuations in São Gonçalo de Lagos could hinder tenant retention and rental price increases, reinforcing the challenges of this strategy. Buy-and-hold With an asking price significantly above its fair value, this property becomes a less attractive option for a buy-and-hold strategy, as the inflated price diminishes the potential for capital appreciation. Coupled with a moderate condition rating of 85/100 and a neighborhood score of 65/100, the prospects for long-term value appreciation appear dim in this scenario.
Economic and Tenant Instability With both economic stability and tenant stability scores at 60/100, there is a significant risk of financial volatility and potential tenant turnover affecting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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