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 127 m² on the 3rd floor, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment offers a spacious sun-drenched terrace with panoramic views of the Lagos Marina, perfect for outdoor dining and relaxation.
The valuation. The asking price of €650,000 exceeds the fair value of €482,595 by €167,405, representing a 25.8% overvaluation, which indicates that the property is overpriced. Buy-to-flip angle. The potential for resale focuses on renovating for short-term vacation rentals, capitalizing on the area's tourism-driven demand. Buy-to-let angle. The estimated monthly rental income of €1,788 leads to a gross yield of 3.3%, indicative of steady long-term rental prospects despite mixed neighborhood characteristics.
Fair value modelled at €482,595 from the area baseline, adjusted for condition and location. Asking €650,000 sits €167,405 (25.8%) above — overpriced versus fair value.
Asking €650,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €498,475 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 82 · Room dimensions 81). 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.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €498,475 + condition +€12,502 + location +€26,609 = modelled fair value of €482,595 (€3,800/m²), a €167,405 (25.8%) gap versus the €650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · be9364 | Subject | €650,000 | €5,118 | — | 80 | 65 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 14.4% | 75 | 67 |
| São Gonçalo de Lagos · 0022fe | Active | €460,000 | €5,055 | 1.2% | 72 | 75 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 3.3% | 80 | 68 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 3.3% | 80 | 73 |
| Median comp | €475,000 | €5,002 | 2.3% | 78 | 71 |
Short-term vacation rental Given the high listing price of €650,000 versus the fair value of €482,595, the 3.3% gross yield suggests that this property is overpriced for short-term vacation rental investment. The seasonal employment and tourism-driven demand may not justify the elevated acquisition costs, limiting return prospects. Long-term rental With a fair value gap of 25.8%, this property is less than ideal for long-term rental investments at the current price. While the neighborhood offers some amenities, the overall condition and rental yield do not support the high initial investment. Buy-and-hold Acquiring this 2-bed apartment for €650,000 appears disadvantageous given its fair value of €482,595, indicating it is overpriced for a buy-and-hold strategy. The current market conditions and potential yield outcomes do not warrant the premium, suggesting a reevaluation of the investment approach may be necessary.
Economic and Tenant Instability With both economic stability and tenant stability scores at 60/100, there is a heightened risk of fluctuations in income and potential vacancy rates due to the unstable economic environment and tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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