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, 1-bathroom apartment of 89 m² on the 1st floor, built in 1990, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment's independent entrance enhances privacy, complemented by a 6 m² balcony ideal for enjoying Algarve's climate and outdoor relaxation.
The valuation. The asking price of €395,000 is significantly above fair value of €342,710, indicating an overvaluation of €52,290 (13.2%). This suggests that potential investors should proceed with caution.
Fair value modelled at €342,710 from the area baseline, adjusted for condition and location. Asking €395,000 sits €52,290 (13.2%) above — overpriced versus fair value.
Asking €395,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €349,325 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (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 70 · Amenities 80 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €349,325 + condition +€2,086 + location +€29,836 = modelled fair value of €342,710 (€3,851/m²), a €52,290 (13.2%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · be960c | Subject | €395,000 | €4,438 | — | 75 | 74 |
| rua Brigadeiro Costa Franco, 3 | Active | €375,000 | €3,676 | 17.2% | 70 | 67 |
| rua Professor Joaquim Alberto Taquelim, 9 | Active | €350,000 | €5,000 | 12.7% | 78 | 71 |
| São Gonçalo de Lagos · 6d5485 | Active | €475,000 | €4,750 | 7.0% | 80 | 68 |
| São Gonçalo de Lagos · 49b7ca | Active | €385,000 | €5,133 | 15.7% | 78 | 76 |
| Median comp | €380,000 | €4,875 | 9.8% | 78 | 70 |
Short-term vacation rental The property at €395,000 presents a gross yield of only 4%, which is below the expected returns for the high-demand Algarve tourist region. Given its overpricing, the potential for profit in the short-term rental market appears limited, making this strategy less appealing. Buy-and-hold With a fair value of €342,710, the asking price reflects a 13.2% premium that diminishes long-term appreciation potential in a market driven primarily by tourism. As the region's appeal may fluctuate, investing in this property as a buy-and-hold strategy poses significant risks due to its current overpriced status. Family rental The neighbourhood score of 74/100 indicates some level of livability, but with the property priced at €395,000, it likely exceeds what many families would be willing to pay for long-term rental. Given its value relative to fair market conditions, this property is not an ideal choice for family rental purposes due to its overpriced nature.
Potential Rent Default The economic stability score of 65/100 indicates a moderate risk of rent defaults, potentially impacting cash flow given the tenant stability score of 70/100 which reflects a decent but not strong tenant retention rate.
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
