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, 2-bathroom apartment of 126 m² on the 2nd floor, built in 2018, energy rating A+. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features a generous southwest-facing terrace, ideal for sunset views and outdoor entertaining, seamlessly connecting the stylish living space with the vibrant outdoor ambiance.
The valuation. The asking price of €545,000 sits €71,509 above the fair value of €473,491, reflecting an overvaluation of 13.1%. This suggests that potential investors may face challenges in achieving a profitable exit.
Fair value modelled at €473,491 from the area baseline, adjusted for condition and location. Asking €545,000 sits €71,509 (13.1%) above — overpriced versus fair value.
Asking €545,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €494,550 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €494,550 + condition +€8,859 + location +€24,640 = modelled fair value of €473,491 (€3,758/m²), a €71,509 (13.1%) gap versus the €545,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · b7c006 | Subject | €545,000 | €4,325 | — | 75 | 64 |
| parque do Moínho | Active | €610,000 | €5,041 | 16.6% | 80 | 73 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 56.0% | 85 | 71 |
| largo do Rossio de São João Batista, 1 | Active | €1,290,000 | €4,388 | 1.4% | 88 | 80 |
| São Gonçalo de Lagos · 0016aa | Active | €530,000 | €4,077 | 5.7% | 76 | 74 |
| Median comp | €855,000 | €4,715 | 9.0% | 83 | 74 |
Short-term vacation rental The property, priced at €545,000, is 13.1% above its fair value of €473,491, indicating it may not generate the desired returns for a vacation rental strategy. Given the gross yield of 3.8% and the current economic impact from seasonal employment, this investment could struggle to meet performance expectations. Long-term rental With the high asking price reflecting a significant gap from its fair value, the apartment may not be the most viable option for long-term rental income. The combination of a relatively low gross yield and the lower average neighborhood rating suggests challenges in maintaining attractive tenant quality over time. Buy-and-hold Investing in this property for the buy-and-hold strategy appears less appealing, as the current price point has already risen above fair market value. While the Algarve is known for its demand, the 3.8% yield and overpriced listing could lead to limited appreciation and dampened overall return on investment.
Economic Vulnerability The economic stability score of 55/100 indicates a moderate risk of economic downturn impacting property values and tenant turnover.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
