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, 2-bathroom apartment of 108 m² on the 2nd floor, built in 2005, energy rating C. Located on rua da Galé, 23C, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This corner unit benefits from abundant natural light, providing a welcoming atmosphere and stunning panoramic views of the sea and surrounding hills.
The valuation. The asking price of €410,000 is significantly above the fair value of €351,114, indicating an overvaluation of €58,886, or 16.8%. This suggests the property does not represent a sound investment opportunity at its current price.
Fair value modelled at €351,114 from 6 comparable sales in the area. Asking €410,000 sits €58,886 (16.8%) above — overpriced versus fair value.
Asking €410,000 versus the rua da Galé, 23C area baseline of €349,270 (€3,234/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €349,270, adjusted for condition and micro-location, gives a modelled fair value of €351,114 (€3,251/m²), a €58,886 (16.8%) gap versus the €410,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Galé, 23C | Subject | €410,000 | €3,796 | — | 70 | 67 |
| rua de Santo Amaro, 7 | Active | €545,000 | €3,263 | 14.0% | 72 | 71 |
| rua Dom Diogo de Sousa, 35 | Active | €370,000 | €2,824 | 25.6% | 68 | 81 |
| parque do Moínho | Active | €460,000 | €3,333 | 12.2% | 73 | 74 |
| São Gonçalo de Lagos · b3286a | Active | €570,000 | €3,239 | 14.7% | 75 | 74 |
| Median comp | €502,500 | €3,251 | 14.4% | 73 | 74 |
Short-term vacation rental The property is not suitable for short-term vacation rental given its 16.8% gap above fair value at €410,000, which places it beyond an attractive investment threshold for seasonal tourists. With a gross yield of only 4.5%, potential returns are unlikely to justify such a premium in a tourism-dependent economy. Buy-and-hold Investing in this apartment for a buy-and-hold strategy would be misguided, as the current asking price exceeds fair value, suggesting future appreciation may not keep pace with the initial investment. The neighborhood's rating of 67/100 indicates moderate desirability, but the overpriced nature of this asset undermines long-term holding potential. Long-term rental The long-term rental strategy is compromised by the apartment being listed at €410,000, which is above the fair value of €351,114, creating a financial mismatch with expected rental income. Despite the apartment's decent condition rating of 68/100, the overall yield of 4.5% does not compensate for the overvaluation in this seasonal employment-driven market.
Economic Vulnerability The economic stability score of 60 suggests potential vulnerability to market fluctuations, which could impact overall property value and rental income stability.
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