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 139 m², built in 1999, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment boasts an impressive 20-meter long balcony ideal for outdoor leisure and dining, complemented by a private garage with water and electricity connections for versatile use.
The valuation. The asking price of €372,000 sits significantly below the fair value of €509,872, indicating it is underpriced by €137,872 (37.1%). This presents a favorable entry point for potential investors. Buy-to-flip angle. The buy-to-flip strategy capitalizes on the property’s underpricing, aiming for a quick renovation to increase its resale value, potentially targeting a sale price well above €509,872 within a competitive market. Buy-to-let angle. With a gross yield of 5.2%, the rental income strategy is attractive, estimating monthly rental income of approximately €1,612, ideal for short-term vacation rentals in the tourist-friendly Algarve area.
Fair value modelled at €509,872 from the area baseline, adjusted for condition and location. Asking €372,000 sits €137,872 (37.1%) below — the upside to fair value.
Asking €372,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €485,388 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 75 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 80 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €485,388 + condition -€16,289 + location +€40,773 = modelled fair value of €509,872 (€3,668/m²), a €137,872 (37.1%) gap versus the €372,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 99f2c5 | Subject | €372,000 | €2,676 | — | 70 | 71 |
| parque do Moínho | Active | €345,000 | €2,379 | 11.1% | 70 | 75 |
| São Gonçalo de Lagos · 6d5147 | Active | €372,000 | €3,179 | 18.8% | 72 | 73 |
| São Gonçalo de Lagos · 0902e1 | Active | €389,000 | €3,242 | 21.1% | 68 | 71 |
| São Gonçalo de Lagos · 99f380 | Active | €480,000 | €2,840 | 6.1% | 78 | 67 |
| Median comp | €380,500 | €3,010 | 12.5% | 71 | 72 |
Short-term vacation rental The 2-bed apartment in São Gonçalo de Lagos is positioned in a high-demand tourist area, making it an attractive option for short-term vacation rentals with a gross yield of 5.2%. The current listing price is 37.1% below the fair value of €509,872, suggesting significant upside potential for investors in a market where long-term employment may be limited. Long-term rental With a fair value markedly higher than the current price, this property could serve as an appealing long-term rental opportunity, especially given the adequate condition score of 68/100 and neighborhood score of 71/100. The strong tourist demand coupled with limited full-time job prospects indicates a consistent demand for rental properties in the area, enhancing its attractiveness for long-term investment. Buy-and-hold Investing in the São Gonçalo de Lagos apartment as a buy-and-hold strategy could yield substantial returns, evidenced by its fair value indicating a potential appreciation of 37.1%. The location's tourist appeal and the existing condition of the property further affirm its desirability for long-term investment without immediate dependence on short-term rental markets.
Economic volatility risk With an economic stability score of 55/100, there's a significant risk of adverse economic conditions adversely affecting tenant retention and property value.
