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, 3-bathroom duplex of 226 m², built in 2002, energy rating B. Located on praceta João da Costa Reis, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This property features an expansive private rooftop terrace with a barbecue area and outdoor shower, perfect for enjoying the Algarve lifestyle and entertaining guests year-round.
The valuation. The asking price of €640,000 sits €250,048 (39.1%) below the fair value of €890,048, indicating the property is subvalorizada. This presents a significant opportunity for investment in São Gonçalo de Lagos.
Fair value modelled at €890,048 from the area baseline, adjusted for condition and location. Asking €640,000 sits €250,048 (39.1%) below — the upside to fair value.
Asking €640,000 versus the praceta João da Costa Reis area baseline of €789,192 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 85 · Materials 84 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 68 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
praceta João da Costa Reis
Area baseline €789,192 + condition +€28,250 + location +€72,606 = modelled fair value of €890,048 (€3,938/m²), a €250,048 (39.1%) gap versus the €640,000 asking price.
Short-term vacation rental The property’s location in the Algarve, coupled with a fair value significantly above the listing price, indicates a strong potential for short-term vacation rental income, supported by a gross yield of 4.7%. With an 84/100 condition rating, the duplex is well-positioned to attract tourists looking for comfortable accommodations in a desirable area. Buy-and-hold The substantial gap between the listing price and its fair value suggests that acquiring this property for a long-term investment could yield significant appreciation over time. The property’s current condition and favorable neighborhood ratings enhance its attractiveness for a buy-and-hold strategy, making it a potentially lucrative asset in the Algarve market. Long-term rental With a gross yield of 4.7% and a stable neighborhood rating of 73/100, this property presents a solid opportunity for long-term rental as demand in the region remains strong. The 39.1% gap to fair value indicates future capital growth potential, making it an appealing option for investors focused on the long-term rental market.
Economic Vulnerability The economic stability score of 68/100 suggests a potential for fluctuations in market conditions that could impact rental income and property value.
