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 on the 1st floor, built in 2002, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment includes private access to outdoor living spaces and expansive terraces, maximizing the experience of resort-style living in a scenic environment. Key Highlights: Recently updated HVAC system enhances comfort year-round.
The valuation. The asking price of €425,000 sits €13,313 (3.1%) above the fair value of €411,687, indicating that the property is overpriced in a competitive market. Buyers should consider this discrepancy carefully. Buy-to-flip angle. A buy-to-flip strategy could focus on quick renovations to enhance the apartment's appeal for resale, leveraging its high-quality finishes, with potential profits derived through targeted marketing in the popular Lagos area. Buy-to-let angle. With an estimated gross yield of 4.8% (~€1,700/month), the buy-to-let strategy can capitalize on the area's appeal for short-term vacation rentals and family accommodation, providing a steady income stream for investors.
Fair value modelled at €411,687 from the area baseline, adjusted for condition and location. Asking €425,000 sits €13,313 (3.1%) 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 75 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €419,975 + condition +€2,173 + location +€35,870 = modelled fair value of €411,687 (€3,848/m²), a €13,313 (3.1%) gap versus the €425,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 6c795e | Subject | €425,000 | €3,972 | — | 75 | 74 |
| 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 |
| São Gonçalo de Lagos · 090044 | Active | €685,000 | €5,708 | 43.7% | 82 | 73 |
| Median comp | €477,500 | €5,328 | 34.1% | 78 | 70 |
Short-term vacation rental The property is overpriced at €425,000, slightly above its fair value of €411,687, making it less attractive for short-term vacation rental investors. With a gross yield of 4.8%, potential returns may not justify the investment given the significant price gap. Buy-and-hold This 2-bed apartment’s current listing of €425,000 reflects an overpriced assessment against its fair value of €411,687, suggesting long-term appreciation may be hindered. The required yield of 4.8% might fall short of expectations, limiting its appeal for buy-and-hold strategies. Family rental At €425,000, the apartment is considered overpriced compared to a fair value of €411,687, which could affect its attractiveness for family rental opportunities. The moderate 4.8% gross yield may not compete well in a rental market that typically seeks greater value for cost. Not ideal for: Student housing, Luxury market The property’s valuation and yield indicate it is not positioned well for student housing or the luxury market, given the current competitive dynamics and high pricing.
Economic Volatility Risk The economic stability score of 65 suggests a moderate risk of economic fluctuations that could impact 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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