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 186 m². Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment includes a large closed balcony, enhancing living space with garden views and creating an ideal area for leisure or dining year-round.
The valuation. The asking price of €385,000 sits significantly below the fair value of €691,865, indicating a potential opportunity for investment. The property is underpriced by €306,865, or 79.7% against market expectations.
Fair value modelled at €691,865 from the area baseline, adjusted for condition and location. Asking €385,000 sits €306,865 (79.7%) below — the upside to fair value.
Asking €385,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €649,512 (€3,492/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 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €649,512 + condition -€12,206 + location +€54,559 = modelled fair value of €691,865 (€3,720/m²), a €306,865 (79.7%) gap versus the €385,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 1e6013 | Subject | €385,000 | €2,070 | — | 73 | 71 |
| rua General Humberto Delgado | Active | €395,000 | €3,160 | 52.7% | 68 | 67 |
| São Gonçalo de Lagos · f3606a | Active | €395,000 | €3,160 | 52.7% | 70 | 70 |
| rua 25 de Abril | Active | €535,000 | €3,075 | 48.5% | 72 | 74 |
| São Gonçalo de Lagos · 25f6a6 | Active | €330,000 | €2,558 | 23.6% | 70 | 73 |
| Median comp | €395,000 | €3,118 | 50.6% | 70 | 72 |
Short-term vacation rental This property’s strategic location near popular beaches in the Algarve, combined with its substantial 79.7% gap versus fair value, presents a lucrative opportunity for short-term vacation rentals. The 5.3% gross yield supports this strategy, allowing investors to capitalize on the high demand for tourist accommodations in the area. Long-term rental Considering the property's fair value of €691,865 and its competitive price of €385,000, long-term rental offers a stable investment avenue with potential for substantial appreciation. The apartment's condition score of 71/100 indicates it is well-maintained, making it attractive to long-term tenants seeking quality housing in a bustling tourist region. Buy-and-hold The significant gap between the listing price and fair value marks this property as an ideal candidate for a buy-and-hold strategy, where investors can benefit from long-term appreciation in a tourism-dependent economy. Owning this apartment not only offers a solid foundation for capital gains but also the possibility of generating continuous rental income in a desirable neighborhood. Not ideal for student housing The current configuration and location of the property do not align with student housing demands, which typically require smaller units and proximity to educational institutions. Therefore, the investment would not tap into this specific market effectively. Not ideal for industrial investment Given the residential nature of the property and its proximity to tourist areas, pursuing industrial investments here would likely yield minimal returns and face zoning challenges. Investors should focus on more suitable sectors that align with the property’s strengths. Not ideal for agricultural development The urban setting of the 3-bed apartment, coupled with a thriving tourism economy, makes it unsuitable for agricultural development, as there is neither land nor community need for such investments. Instead, this property should redirect focus toward residential and rental strategies.
Potential Economic Decline The economic stability score of 65/100 suggests a moderate risk that local economic conditions may worsen, impacting tenant retention and rental income over time.
