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 90 m² on the 1st floor, built in 2006, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The property offers a balcony with a panoramic river view, and is located in a tranquil area with easy access to lush green spaces and public parking.
The valuation. The asking price of €408,000 is significantly above the fair value of €357,477, making this property overpriced by €50,523 (14.1%). This discrepancy suggests potential buyers should consider negotiating a lower price. Buy-to-flip angle. A buy-to-flip strategy could involve enhancing the apartment's appeal through minor renovations to capitalize on the high tourism demand in the area, aiming for a resale at a premium price above the purchase total. Buy-to-let angle. With an estimated gross yield of 4.3% and an expected rental income of approximately €1,462 per month, the apartment could serve as a profitable long-term investment for vacation rentals in this tourism-driven market.
Fair value modelled at €357,477 from 6 comparable sales in the area. Asking €408,000 sits €50,523 (14.1%) above — overpriced versus fair value.
Asking €408,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €339,047 (€3,767/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €339,047, adjusted for condition and micro-location, gives a modelled fair value of €357,477 (€3,972/m²), a €50,523 (14.1%) gap versus the €408,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 375082 | Subject | €408,000 | €4,533 | — | 74 | 70 |
| São Gonçalo de Lagos · 6c795e | Active | €425,000 | €3,972 | 12.4% | 75 | 74 |
| São Gonçalo de Lagos · 43918c | Active | €425,000 | €3,972 | 12.4% | 75 | 70 |
| São Gonçalo de Lagos · 28b67a | Active | €425,000 | €3,972 | 12.4% | 75 | 72 |
| São Gonçalo de Lagos · 23f20d | Active | €425,000 | €3,972 | 12.4% | 73 | 70 |
| Median comp | €425,000 | €3,972 | 12.4% | 75 | 71 |
Short-term vacation rental The current listing price of €408,000 represents a gap of 14.1% from its fair value of €357,477, indicating the property is overpriced for a short-term vacation rental investment. Furthermore, while the location has high tourism demand, the yield of 4.3% gross does not justify the elevated entry cost. Buy-and-hold Investing in this property as a buy-and-hold strategy may prove challenging given its current overvaluation, priced at €408,000 against a fair value of €357,477. In addition, the 4.3% gross yield suggests limited return potential relative to the acquisition cost in a high tourism area. Family rental The €408,000 listing is significantly overvalued compared to the fair value of €357,477, making it less attractive as a family rental option. With a condition score of 77/100 and a neighborhood rating of 70/100, the property may not deliver adequate value to families seeking reasonable rental pricing in a competitive market.
Economic Vulnerability The property faces a risk due to its economic stability score of 60/100, indicating potential fluctuations in the local economic environment that could impact rental income.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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