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 136 m², built in 2025, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: This apartment offers a private terrace pool with stunning sea views and direct access to well-maintained landscaping, enhancing outdoor living and leisure opportunities.
The valuation. The asking price of €640,000 is significantly above the fair value of €531,805, representing an overpricing of €108,195 (16.9%). This suggests potential difficulty in achieving a profitable sale at the current asking price.
Fair value modelled at €531,805 from the area baseline, adjusted for condition and location. Asking €640,000 sits €108,195 (16.9%) above — overpriced versus fair value.
Asking €640,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €533,800 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 (Condition 85 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €533,800 + condition +€17,000 + location +€39,893 = modelled fair value of €531,805 (€3,910/m²), a €108,195 (16.9%) gap versus the €640,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · be9379 | Subject | €640,000 | €4,706 | — | 85 | 71 |
| parque do Moínho | Active | €610,000 | €5,041 | 7.1% | 80 | 73 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 43.4% | 85 | 71 |
| São Gonçalo de Lagos · b7c006 | Active | €545,000 | €4,325 | 8.1% | 75 | 64 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 43.4% | 80 | 68 |
| Median comp | €855,000 | €5,895 | 25.3% | 80 | 70 |
Short-term vacation rental The property, priced at €640,000, presents a 16.9% gap versus its fair value of €531,805, indicating it is overpriced. With a gross yield of only 3.5%, the return potential is limited in the competitive short-term rental market of the Algarve. Long-term rental While the property is in decent condition and located in a tourist-heavy region, its asking price of €640,000 exceeds the fair value of €531,805, making it overpriced. The potential long-term rental income does not justify the high entry cost given the annual fluctuations of a tourism-driven economy. Buy-and-hold Investing in this property as a buy-and-hold asset could be risky, as it is overpriced at €640,000 compared to the fair valuation of €531,805. The low yield of 3.5% further dampens the attractiveness of holding onto this asset in a seasonal economy. Not ideal for: Student housing, Luxury market, Industrial property investment The market conditions and property characteristics do not align well with student housing or luxury segments, potentially limiting demand. Additionally, the industrial property investment strategy is not suitable in this predominantly tourist-focused area.
Economic and Tenant Instability With both economic stability and tenant stability scores at only 65/100, there is a risk of fluctuating rental income and potential difficulty in maintaining occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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