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 109 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features a climate-controlled wine cellar and a seamless indoor-outdoor flow, highlighted by panoramic ocean views and two spacious terraces for al fresco living.
The valuation. The asking price of €895,000 significantly exceeds the fair value of €460,773, making it overpriced by €434,227 (94.2%). This discrepancy suggests that the current listing does not align with market expectations. Buy-to-flip angle. Given the property's quality and location, a buy-to-flip strategy could involve minimal renovations, targeting an upscale market, and relisting at a premium to capitalize on high local demand. Buy-to-let angle. With an estimated rental income of €1,417/month, the gross yield of 1.9% indicates low return potential for a buy-and-hold strategy, especially in a market influenced heavily by tourism.
Fair value modelled at €460,773 from 6 comparable sales in the area. Asking €895,000 sits €434,227 (94.2%) above — overpriced versus fair value.
Asking €895,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €434,640 (€3,988/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €434,640, adjusted for condition and micro-location, gives a modelled fair value of €460,773 (€4,227/m²), a €434,227 (94.2%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 0ac3eb | Subject | €895,000 | €8,211 | — | 79 | 69 |
| São Gonçalo de Lagos · 652f5f | Active | €465,000 | €5,000 | 39.1% | 72 | 71 |
| Luz · 83118b | Active | €465,000 | €4,227 | 48.5% | 75 | 72 |
| Luz · cc9a04 | Active | €465,000 | €4,227 | 48.5% | 78 | 66 |
| Luz · a8058b | Active | €465,000 | €4,227 | 48.5% | 72 | 65 |
| Median comp | €465,000 | €4,227 | 48.5% | 74 | 69 |
Short-term vacation rental The property's 1.9% gross yield indicates a significant disparity between the asking price of €895,000 and the fair value of €460,773, underscoring its overpriced status. The influence of tourism in the area may provide potential for short-term rentals, but the current pricing severely limits profitability. Buy-and-hold With a fair value of €460,773 and a listing price of €895,000, this apartment is overpriced by 94.2%, which diminishes the long-term investment viability. The modest gross yield of 1.9% further suggests that investors may struggle to realize substantial gains over time. Family rental The high asking price relative to the fair value reflects an overpriced property, reducing its attractiveness as a family rental investment. Even though the neighbourhood offers amenities appealing to families, the expected financial returns do not justify the investment compared to the asking price.
Economic Sensitivity The economic stability score of 65/100 indicates a moderate risk of fluctuations that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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