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.
3-bedroom, 4-bathroom penthouse of 153 m² on the 7th floor, built in 1994, energy rating E. Located on praça do Poder, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This penthouse features a spacious south-facing balcony designed for outdoor dining, offering breathtaking 180-degree views over Lagos and the Atlantic Ocean.
The valuation. The asking price of €656,000 is significantly below the fair value of €1,844,384, indicating that this property is subpriced by €1,188,384 (64.4%). Such a valuation presents an attractive investment opportunity.
Fair value modelled at €1,844,384 from 1 comparable sales in the area. Asking €656,000 sits €1,188,384 (64.4%) below — the upside to fair value.
Asking €656,000 versus the praça do Poder area baseline of €1,759,073 (€11,497/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 is above the parish average, lifting 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 €1,759,073, adjusted for condition and micro-location, gives a modelled fair value of €1,844,384 (€12,055/m²), a €1,188,384 (64.4%) gap versus the €656,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praça do Poder | Subject | €656,000 | €4,288 | — | 80 | 71 |
| rua do Barinel, 3 | Active | €780,000 | €5,098 | 18.9% | 83 | 73 |
| Median comp | €780,000 | €5,098 | 18.9% | 83 | 73 |
Short-term vacation rental The property is subvalorizada by 64.4%, providing an attractive opportunity for conversion into a short-term vacation rental, capitalizing on the Algarve's tourism-driven economy. With a gross yield of 3.6% and high-condition rating of 84/100, it is well-positioned to attract high-quality tourists. Buy-and-hold Given the significant gap between the listing price and the fair value, this penthouse represents a strategic buy-and-hold investment for portfolio diversification in a thriving market. The 71/100 neighborhood score indicates a stable environment for long-term appreciation, bolstered by the region's reliance on tourism. Long-term rental The property offers a compelling long-term rental opportunity, considering the fair value significantly exceeds the asking price, ensuring strong potential for future income streams. With a decent condition rating and a neighborhood score suggesting quality tenant demand, it is poised for stable occupancy in the active rental market.
Economic vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturn affecting tenant retention and rental income stability.**
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
