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 100 m² on the 1st floor, built in 2001, energy rating D. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Notable Features: The property includes a long balcony with open views and a private box garage, a highly sought-after amenity providing secure parking and storage in Lagos. Condition Notes: While some finishes are basic, the apartment is bright, spacious, and well-maintained with modern appliances.
The valuation. The asking price of €379,000 is significantly above fair value, which is assessed at €320,513, resulting in an overvaluation of €58,487 (18.2%). This property is priced higher than its market worth.
Fair value modelled at €320,513 from 6 comparable sales in the area. Asking €379,000 sits €58,487 (18.2%) above — overpriced versus fair value.
Asking €379,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €321,896 (€3,219/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €321,896, adjusted for condition and micro-location, gives a modelled fair value of €320,513 (€3,205/m²), a €58,487 (18.2%) gap versus the €379,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 3d9a88 | Subject | €379,000 | €3,790 | — | 70 | 73 |
| parque do Moínho | Active | €375,000 | €4,310 | 13.7% | 65 | 67 |
| São Gonçalo de Lagos · 6fbc43 | Active | €330,000 | €2,538 | 33.0% | 66 | 70 |
| rua Paolo Cocco | Active | €390,000 | €3,333 | 12.0% | 75 | 67 |
| São Gonçalo de Lagos · 1907b0 | Active | €395,000 | €3,657 | 3.5% | 75 | 73 |
| Median comp | €382,500 | €3,495 | 7.8% | 71 | 69 |
Short-term vacation rental The property’s proximity to tourist attractions provides an opportunity to capitalize on short-term vacation rental demand; however, with a listing price of €379,000, it is overpriced compared to the fair value of €320,513, presenting a potential risk for investors. With a gross yield of 4.7%, the expected returns may not justify the higher entry cost in a competitive market. Value-add renovation Investors might consider a value-add renovation strategy to improve the apartment’s condition, currently rated at 67/100, but the initial acquisition cost of €379,000 is above the fair valuation of €320,513, complicating the investment calculus. Despite potential enhancements leading to increased value, the 18.2% premium raises concerns about recovering renovation costs and achieving favorable returns. Long-term rental While the neighborhood's quality rating of 73/100 suggests a stable tenant base, entering the long-term rental market with an overpriced listing of €379,000 against a fair value of €320,513 may limit cash flow potential. The gross yield of 4.7% indicates modest returns but is strained by the elevated purchase price, limiting overall profitability potential in the long run.
Tenant turnover risk With a tenant stability score of 70/100, there is a moderate risk of tenant turnover impacting rental income stability.
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