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 173 m², built in 2012, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This exceptional coastal apartment features a thoughtfully upgraded kitchen with an induction hob, a wine cellar, and a premium Grohe water system for fresh sparkling water on demand.
The valuation. The asking price of €895,000 is substantially above the fair value of €731,318, representing a difference of €163,682 (22.4%). The property is clearly overpriced based on comparative assessments.
Fair value modelled at €731,318 from 6 comparable sales in the area. Asking €895,000 sits €163,682 (22.4%) above — overpriced versus fair value.
Asking €895,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €675,389 (€3,904/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €675,389, adjusted for condition and micro-location, gives a modelled fair value of €731,318 (€4,227/m²), a €163,682 (22.4%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 0ac8c9 | Subject | €895,000 | €5,173 | — | 85 | 73 |
| São Gonçalo de Lagos · 652f5f | Active | €465,000 | €5,000 | 3.4% | 72 | 71 |
| Luz · cc9a04 | Active | €465,000 | €4,227 | 18.3% | 78 | 66 |
| Luz · 83118b | Active | €465,000 | €4,227 | 18.3% | 75 | 72 |
| Luz · a8058b | Active | €465,000 | €4,227 | 18.3% | 72 | 65 |
| Median comp | €465,000 | €4,227 | 18.3% | 74 | 69 |
Long-term rental The two-bedroom apartment in São Gonçalo de Lagos, listed at €895,000, presents a gross yield of only 2%, which is insufficient given its overpriced status relative to the fair value of €731,318. The combination of its 73/100 neighbourhood rating and the 82/100 condition indicates that long-term tenants may be deterred by the high cost of entry. Short-term vacation rental Given the growing tourism in Algarve, this apartment could attract short-term vacation rentals, yet, at €895,000, it is overpriced compared to the fair value assessed at €731,318. The 2% gross yield suggests that the potential income may not justify the investment risk in a property that is 22.4% above its fair valuation. Buy-and-hold As a buy-and-hold strategy, this apartment fails to substantiate its high price of €895,000, significantly surpassing the fair value of €731,318. With a gross yield of only 2%, the investment could underperform in the long term due to its overpriced nature. Not ideal for The property is not suitable for student housing due to its high cost compared to fair market value. Additionally, it does not lend itself to industrial investments given the residential nature and overpriced status of the unit.
Economic vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact rental income.
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