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.
3-bedroom, 2-bathroom apartment of 150 m², built in 1993, energy rating B. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment boasts a west-facing balcony ideal for afternoon sunbathing, along with a rare Local Accommodation license, offering excellent investment potential in a prime location.
The valuation. The asking price of €435,000 sits €129,007 (29.7%) below the fair value of €564,007, indicating the property is underpriced and presents a lucrative investment opportunity. Buy-to-flip angle. The resale strategy focuses on enhancing property value through upgrades, targeting a quick return in a thriving market, capitalizing on property desirability in the region. Buy-to-let angle. A rental income strategy calculating a gross yield of 6.1% offers an estimated monthly income of €2,211, making it an attractive buy-and-hold investment in a popular tourist area.
Fair value modelled at €564,007 from the area baseline, adjusted for condition and location. Asking €435,000 sits €129,007 (29.7%) below — the upside to fair value.
Asking €435,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €588,750 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 73 · Materials 68 · Room dimensions 73). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €588,750 + condition -€10,078 + location +€50,285 = modelled fair value of €564,007 (€3,760/m²), a €129,007 (29.7%) gap versus the €435,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · b7b721 | Subject | €435,000 | €2,900 | — | 73 | 74 |
| rua Francisco Xavier Ataíde de Oliveira | Active | €425,000 | €3,102 | 7.0% | 75 | 71 |
| praceta João da Costa Reis | Active | €640,000 | €2,832 | 2.3% | 85 | 73 |
| rua do Barinel | Active | €475,000 | €4,060 | 40.0% | 72 | 74 |
| São Gonçalo de Lagos · 735461 | Active | €319,000 | €2,593 | 10.6% | 72 | 70 |
| Median comp | €450,000 | €2,967 | 2.3% | 74 | 72 |
Short-term vacation rental This property is positioned as an attractive option for short-term vacation rentals, with a gross yield of 6.1% that is competitive in the popular tourist region of Lagos. The strong gap of 29.7% from its fair value of €564,007 further enhances its appeal for vacation rental investors seeking solid returns. Family rental With a neighborhood rating of 74/100 and decent amenities, this 3-bed apartment is well-suited for family rentals, meeting the demands of long-term residents. The fair value gap indicates a favorable investment opportunity for landlords looking to secure stable tenants. Buy-and-hold Investing in this property as a buy-and-hold option is prudent, given its current price of €435,000 against a fair value of €564,007, allowing for potential appreciation. The combination of a strong rental yield and the area's seasonal dynamics supports a robust long-term investment strategy.
Economic vulnerability The economic stability score of 65/100 indicates a potential for fluctuations in property value, which could impact long-term investment returns negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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