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 107 m², built in 2002, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features a balcony overlooking the golf course, perfect for enjoying serene sunrises and sunsets, and is located steps from the clubhouse for convenient leisure activities.
The valuation. The asking price of €425,000 is €19,793 (4.7%) above the fair value of €405,207, indicating that the property is overpriced. This discrepancy suggests potential difficulty in achieving a profitable sale in the current market. Buy-to-flip angle. The strategy for resale involves enhancing the property’s appeal through targeted upgrades and market positioning; however, the current asking price may hinder quick turnover with minimal ROI. Buy-to-let angle. With an estimated gross yield of 4.8% based on €1,700 monthly rent, the property could serve as a reliable income-generating asset for long-term holding despite the initial valuation concerns.
Fair value modelled at €405,207 from the area baseline, adjusted for condition and location. Asking €425,000 sits €19,793 (4.7%) above — overpriced versus fair value.
Asking €425,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €419,975 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 73 · Materials 78 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €419,975 + condition +€1,672 + location +€29,892 = modelled fair value of €405,207 (€3,787/m²), a €19,793 (4.7%) gap versus the €425,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 23f20d | Subject | €425,000 | €3,972 | — | 73 | 70 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 47.4% | 75 | 67 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 24.6% | 75 | 72 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 24.6% | 80 | 68 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 24.6% | 80 | 73 |
| Median comp | €475,000 | €4,948 | 24.6% | 78 | 70 |
Short-term vacation rental Given the high tourist traffic in Lagos, this property may struggle to achieve its desired rental income, especially with a listing price of €425,000, which is 4.7% above fair value. Additionally, with a condition score of 76/100, the need for maintenance could further deter potential guests, ultimately impacting profitability. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unwise, as the market shows it is overpriced at €425,000 compared to its fair value of €405,207. The rental yield of 4.8% does not justify the investment at this price point, especially in a neighborhood that scores 70/100 for overall appeal. Family rental While family rentals can benefit from Lagos' stable population, the current asking price of €425,000 positions this property as overpriced at 4.7% above fair value. The relatively modest condition rating of 76/100 indicates that prospective tenants may seek alternatives unless significant updates are made, limiting the attractiveness of this investment type.
Tenant turnover risk The tenant stability score of 70/100 suggests a moderate level of stability, indicating potential challenges with tenant retention and associated vacancy costs due to the lower economic stability score of 55/100.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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