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 93 m², built in 1991, energy rating C. Located on rua Frei António da Purificação, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The apartment boasts a generous balcony with panoramic city views, enhancing outdoor living experiences in a tranquil setting close to amenities and the beach. Price: €369,000
The valuation. The asking price of €369,000 sits below the fair value of €484,859, making this property subvalued by €115,859 (31.4%). This presents a prime opportunity for investors looking for value in the real estate market.
Fair value modelled at €364,916 from the area baseline, adjusted for condition and location. Asking €369,000 sits €4,084 (1.1%) above — overpriced versus fair value.
Asking €369,000 versus the rua Frei António da Purificação area baseline of €324,756 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 77/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
rua Frei António da Purificação
Area baseline €324,756 + condition +€5,086 + location +€35,074 = modelled fair value of €364,916 (€3,924/m²), a €4,084 (1.1%) gap versus the €369,000 asking price.
Short-term vacation rental The property in São Gonçalo de Lagos is particularly attractive as a short-term vacation rental, given its proximity to the tourism hotspots of the region and a fair value gap of 31.4%. With a gross yield of 4.5%, this investment capitalizes on Lagos' reputation as a well-known tourist destination. Long-term rental This apartment serves as a strong candidate for long-term rental given its favorable condition rating of 79/100 and a neighborhood score of 77/100, indicating good tenant quality. With a significant gap to fair value, the investment offers solid rental stability and potential appreciation over time. Buy-and-hold The buy-and-hold strategy for this property is compelling due to its underpriced status, suggesting room for value growth in the future. The combination of favorable yield and the property’s location in a desirable tourist destination makes it a likely candidate for long-term capital appreciation. Not ideal for: Student housing, Industrial investment, Agricultural investment Given its characteristics and location, this property is ill-suited for student housing, industrial, or agricultural investments, which typically require different property types and locations to thrive.
Tenant turnover risk The tenant stability score of 70/100 indicates a moderate likelihood of tenant turnover, which could lead to increased vacancy rates and associated costs.
