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 124 m², built in 2003, energy rating D. Located on rua das Gaivotas, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The apartment's balcony offers a picturesque sea view, enhancing outdoor leisure opportunities and providing a serene space for relaxation. Condition Notes: Overall maintenance is satisfactory, though bathrooms show some wear.
The valuation. The asking price of €300,000 is significantly below the fair value of €459,194, representing an undervaluation of €159,194 (53.1%). This presents an attractive entry point for potential investors.
Fair value modelled at €459,194 from the area baseline, adjusted for condition and location. Asking €300,000 sits €159,194 (53.1%) below — the upside to fair value.
Asking €300,000 versus the rua das Gaivotas area baseline of €433,008 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 75 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 75 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua das Gaivotas
Area baseline €433,008 + condition +€1,938 + location +€24,248 = modelled fair value of €459,194 (€3,703/m²), a €159,194 (53.1%) gap versus the €300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Gaivotas | Subject | €300,000 | €2,419 | — | 72 | 64 |
| São Gonçalo de Lagos · 4b98a1 | Active | €330,000 | €2,946 | 21.8% | 75 | 76 |
| parque do Moínho | Active | €345,000 | €2,379 | 1.7% | 70 | 75 |
| São Gonçalo de Lagos · 99f380 | Active | €480,000 | €2,840 | 17.4% | 78 | 67 |
| São Gonçalo de Lagos · 735461 | Active | €319,000 | €2,593 | 7.2% | 72 | 70 |
| Median comp | €337,500 | €2,717 | 12.3% | 74 | 73 |
Long-term rental With a fair value of €459,194, the current listing of €300,000 indicates a significant opportunity for a long-term rental investment given the 6% gross yield. The neighborhood, while rated 64/100, benefits from seasonal tourism, suggesting consistent tenant demand. Short-term vacation rental The substantial gap of 53.1% between the listing and fair value highlights the potential for lucrative short-term vacation rental returns in the tourist-rich Algarve region. With the property in reasonable condition (76/100), it is well-positioned to attract visitors seeking temporary accommodations. Value-add renovation This property presents an appealing opportunity for value-add renovations, especially considering the fair value significantly exceeds the purchase price. By enhancing the property's condition, further increasing its value in the competitive rental market can be achieved, capitalizing on the region's strong tourism appeal.
Low Economic Stability Risk A score of 55/100 indicates a weak economic environment, potentially impacting rental income and property appreciation negatively.
