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.
5-bedroom, 2-bathroom apartment of 450 m² on the 5th floor, built in 1900, energy rating A+. Located on estrada A22, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This luxury penthouse boasts a stunning rooftop terrace equipped with a modern pool and hot tub, offering breathtaking panoramic views of Lagos and the bay.
The valuation. The asking price of €490,000 sits significantly below the fair value of €1,459,587, indicating it is underpriced by €969,587 (66.4%). This situation creates an excellent investment opportunity. Buy-to-flip angle. The property can be quickly resold at a higher price post-renovation or strategic staging, given its luxury condition and location near the Algarve's tourism hotspots. Immediate upgrades could yield substantial returns. Buy-to-let angle. With potential for short-term vacation rentals and a vibrant tourist market, the property can generate lucrative rental income, capitalizing on the area's appeal. Its luxury amenities attract premium rates.
Fair value modelled at €1,459,587 from 6 comparable sales in the area. Asking €490,000 sits €969,587 (66.4%) below — the upside to fair value.
Asking €490,000 versus the estrada A22 area baseline of €1,212,205 (€2,694/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €1,212,205, adjusted for condition and micro-location, gives a modelled fair value of €1,459,587 (€3,244/m²), a €969,587 (66.4%) gap versus the €490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada A22 | Subject | €490,000 | €1,089 | — | 94 | 70 |
| largo do Rossio de São João Batista, 1 | Active | €1,290,000 | €4,388 | 303.0% | 88 | 80 |
| São Gonçalo de Lagos · 1e613a | Active | €650,000 | €3,218 | 195.5% | 80 | 72 |
| largo do Rossio de São João Batista | Active | €1,290,000 | €4,388 | 303.0% | 90 | 70 |
| São Gonçalo de Lagos · 4a43df | Active | €765,000 | €3,269 | 200.2% | 78 | 72 |
| Median comp | €1,027,500 | €3,829 | 251.6% | 84 | 72 |
Short-term vacation rental Given the property’s substantial gap from its fair value of €1,459,587, it presents a rare opportunity in a tourism-driven economy, where high demand for short-term rentals can yield significant returns. The strong condition rating of 86/100 further supports its potential as a desirable vacation destination, attracting visitors to Lagos year-round. Buy-and-hold With a fair value substantially higher than the listing price, this property offers an excellent buy-and-hold investment in the long-term growth of the Algarve region. The relatively solid neighbourhood score of 70/100 indicates a stable environment for rental income, promising consistent demand over time. Value-add renovation The property is positioned as an attractive investment for value-add renovations, given its strong fair value and current condition rating. By enhancing the apartment, investors could capitalize on the existing gap to the fair market value and potentially significantly increase yields in a thriving rental market.
Economic Concerns The economic stability score of 60/100 indicates potential volatility in income generation, which may affect the reliability of tenant payments.
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