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 apartment of 152 m² on the 3rd floor, built in 2021, energy rating A+. Located on rua Miguel Torga, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features a complete home automation system for intuitive control of lighting and climate, enhancing modern living in a luxury coastal setting.
The valuation. The asking price of €1,250,000 sits significantly above the fair value of €857,335, creating a disparity of €392,665 (45.8%). This property is therefore considered overpriced. Buy-to-flip angle. A resale strategy could capitalize on the apartment's luxury finishes and ideal tourist location, although the current valuation limits immediate profit potential. Careful market timing would be essential for maximizing return. Buy-to-let angle. With a gross yield of 1.9% and estimated rental income of €1,979/month, the buy-to-let strategy focuses on long-term cash flow. Given the area's tourist appeal, short-term rentals could further enhance profitability.
Fair value modelled at €857,335 from 6 comparable sales in the area. Asking €1,250,000 sits €392,665 (45.8%) above — overpriced versus fair value.
Asking €1,250,000 versus the rua Miguel Torga area baseline of €773,436 (€5,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €773,436, adjusted for condition and micro-location, gives a modelled fair value of €857,335 (€5,640/m²), a €392,665 (45.8%) gap versus the €1,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Miguel Torga | Subject | €1,250,000 | €8,224 | — | 80 | 73 |
| São Gonçalo de Lagos · 467fdd | Active | €1,350,000 | €5,649 | 31.3% | 82 | 68 |
| rua Raul Brandäo | Active | €980,000 | €5,632 | 31.5% | 80 | 65 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 17.9% | 80 | 68 |
| São Gonçalo de Lagos · b7c006 | Active | €545,000 | €4,325 | 47.4% | 75 | 64 |
| Median comp | €1,040,000 | €5,641 | 31.4% | 80 | 67 |
Short-term vacation rental This property, priced at €1,250,000, is significantly above its fair value of €857,335, indicating it may not yield the expected returns as a short-term vacation rental. With a gross yield of only 1.9%, the financial viability of this strategy appears weak in the current market context. Buy-and-hold Investing in this apartment as a buy-and-hold property seems less appealing given its listing price exceeds fair value by 45.8%. The projected yield of 1.9% does not justify the initial capital outlay, suggesting that capital appreciation may not compensate for the high acquisition cost. Family rental While the neighborhood rates an adequate 73/100, the property’s overvaluation at €1,250,000 makes it a difficult fit for family rental purposes. Given the property’s limited yield of 1.9% and the market's current conditions, long-term renting may not offer optimal returns in relation to the investment made.
Increased Vacancy Risk With an economic stability score of 65/100 and tenant stability score of 70/100, the property may face a heightened risk of vacancies, potentially affecting cash flow stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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