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.
1-bedroom, 1-bathroom apartment of 63 m², built in 2025, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes access to a private terrace that offers stunning panoramic views of the sea and coastline, enhancing its appeal as a coastal residence.
The valuation. The asking price of €500,000 is significantly above the fair value of €336,375, representing an overvaluation of €163,625 (48.6%). This property is considered overpriced based on current market conditions.
Fair value modelled at €336,375 from 6 comparable sales in the area. Asking €500,000 sits €163,625 (48.6%) above — overpriced versus fair value.
Asking €500,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €310,662 (€4,931/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €310,662, adjusted for condition and micro-location, gives a modelled fair value of €336,375 (€5,339/m²), a €163,625 (48.6%) gap versus the €500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · ec196e | Subject | €500,000 | €7,937 | — | 82 | 81 |
| urbanização Senhora Gloria, 30 | Active | €475,000 | €5,793 | 27.0% | 80 | 78 |
| São Gonçalo de Lagos · 1906ea | Active | €575,000 | €5,637 | 29.0% | 78 | 74 |
| rua Raul Brandäo | Active | €1,100,000 | €6,748 | 15.0% | 80 | 68 |
| estrada da Albardeira, 1 | Active | €529,000 | €4,133 | 47.9% | 75 | 73 |
| Median comp | €552,000 | €5,715 | 28.0% | 79 | 74 |
Short-term vacation rental This 1-bed apartment in São Gonçalo de Lagos, priced at €500,000, does not present a viable opportunity for a short-term vacation rental given its 0% gross yield and substantial price gap of 48.6% compared to its fair value of €336,375. The property’s location in a high-demand tourist area does not mitigate the fact that it is overpriced, limiting potential rental income viability. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its significant overpricing of 48.6% above fair value, indicating it may not appreciate at the expected rates over time. With a gross yield of 0%, the purchase will not produce income and may strain cash flow, further reinforcing the notion that this asset is overpriced. Luxury market While the luxury market often seeks properties with high amenities and unique appeal, this 1-bed apartment's steep price of €500,000 contrasts sharply with its fair market value of €336,375, indicating it is overpriced and lacks the required differentiation for luxury buyers. Additionally, the high pricing without a corresponding luxury feature set limits its attractiveness to discerning buyers in this segment.
Economic Vulnerability With an economic stability score of 65/100, there is a significant risk of local economic downturns affecting property values and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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