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 108 m², built in 1994, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Highlights: This property features a covered terrace offering panoramic views over Ponta da Piedade and the ocean, and an elevator providing easy access to the communal rooftop terrace for residents.
The valuation. The asking price of €395,000 is significantly above the fair value of €350,000, placing it €45,000 (12.9%) over the estimated worth. This indicates that the property is overpriced. Buy-to-flip angle. A short-term vacation rental strategy could capitalize on the high demand for temporary accommodations in the Algarve, aiming to increase the resale value by up to 20% after renovations. Buy-to-let angle. Implementing a buy-and-hold strategy could yield a gross rental income of approximately €1,481 per month, translating to a 4.5% gross yield while benefiting from the property's appeal to long-term tenants.
Fair value modelled at €350,000 from 5 comparable sales in the area. Asking €395,000 sits €45,000 (12.9%) above — overpriced versus fair value.
Asking €395,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €332,585 (€3,079/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €332,585, adjusted for condition and micro-location, gives a modelled fair value of €350,000 (€3,241/m²), a €45,000 (12.9%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 3d9685 | Subject | €395,000 | €3,657 | — | 70 | 73 |
| rua Paolo Cocco | Active | €390,000 | €3,333 | 8.9% | 75 | 67 |
| parque do Moínho | Active | €362,500 | €3,152 | 13.8% | 74 | 72 |
| praça do Poder, 7A | Active | €350,000 | €3,241 | 11.4% | 75 | 70 |
| rua General Humberto Delgado, 1 | Active | €360,000 | €3,077 | 15.9% | 70 | 70 |
| Median comp | €361,250 | €3,197 | 12.6% | 75 | 70 |
Short-term vacation rental The property is overpriced with a fair value of €350,000 compared to its listing price of €395,000, presenting a potential yield of only 4.5%. Given the strong tourism influence in the Algarve, the current cost may limit competitive pricing in the short-term rental market. Buy-and-hold At a listing price of €395,000 and a fair value of €350,000, this property does not present an appealing investment opportunity for a buy-and-hold strategy due to being priced excessively above fair market value. The anticipated appreciation in a desirable area may be overshadowed by the high initial purchase cost. Long-term rental With a rental yield of 4.5% based on an overpriced listing of €395,000, the property may struggle to attract tenants in a competitive long-term rental market. Investors may find the current pricing inhibits potential returns and diminishes demand from quality tenants. Not ideal for The property is not suitable for student housing, as the oversaturation in the market may lead to reduced demand despite the neighbourhood’s fair rating. Similarly, targeting the luxury market or industrial development would likely yield disappointing results given the higher-than-fair value that limits the appeal.
Economic Vulnerability The property may face challenges due to a moderately low economic stability score of 65, indicating potential fluctuations in income and employment that could impact tenant retention and cash flow.
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