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 64 m² on the 2nd floor, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique Feature: Occupying a prime second-floor position with elevator access, this apartment benefits from elevated views and enhanced privacy in the desirable Alvor area. Other Feature: The double glazing ensures significant noise reduction and energy efficiency, making it an ideal retreat in a bustling locale.
The valuation. The asking price of €397,500 sits €48,381 (13.9%) above the fair value of €349,119, indicating that this property is overpriced despite its functional condition. Buyers should carefully consider this discrepancy before proceeding.
Fair value modelled at €349,119 from 6 comparable sales in the area. Asking €397,500 sits €48,381 (13.9%) above — overpriced versus fair value.
Asking €397,500 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €353,540 (€5,524/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 €353,540, adjusted for condition and micro-location, gives a modelled fair value of €349,119 (€5,455/m²), a €48,381 (13.9%) gap versus the €397,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · e553da | Subject | €397,500 | €6,211 | — | 72 | 73 |
| São Gonçalo de Lagos · ec196e | Active | €500,000 | €7,937 | 27.8% | 82 | 81 |
| urbanização Senhora Gloria, 30 | Active | €475,000 | €5,793 | 6.7% | 80 | 78 |
| São Gonçalo de Lagos · 1906ea | Active | €575,000 | €5,637 | 9.2% | 78 | 74 |
| rua Dom João I | Active | €575,000 | €3,885 | 37.4% | 75 | 77 |
| Median comp | €537,500 | €5,715 | 8.0% | 79 | 78 |
Short-term vacation rental Given its proximity to Algarve tourist hotspots, the property may attract seasonal visitors; however, with a gross yield of only 2.7%, the investment's profitability is limited. Additionally, the property's pricing is 13.9% above the fair value, indicating it may not generate sufficient returns in the competitive vacation rental market. Long-term rental While long-term rentals can provide stable income, the 2.7% gross yield suggests that this investment may struggle to meet cash flow expectations against the backdrop of a property priced 13.9% above fair value. The overall condition score of 68/100 could deter potential long-term tenants, impacting rental demand. Buy-and-hold Purchasing this apartment as a buy-and-hold investment poses risks, particularly as the current price exceeds fair value by 13.9%, which could limit future appreciation. The neighborhood's reasonably strong condition rating of 73/100 provides some reassurance, yet it may not be sufficient to justify the investment at this price point.
Economic Vulnerability The economic stability score of 65/100 suggests a potential risk due to fluctuating economic conditions that could impact rental income and property value.
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
