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 apartment of 202 m², built in 2024, energy rating A. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features a rooftop saltwater pool with panoramic mountain views, ideal for relaxation and socializing while enjoying the Algarve sun.
The valuation. The asking price of €650,000 is significantly below the fair value of €792,708, presenting an opportunity as it is underpriced by €142,708 (22.0%). This favorable positioning highlights potential for immediate equity gain.
Fair value modelled at €792,708 from the area baseline, adjusted for condition and location. Asking €650,000 sits €142,708 (22.0%) below — the upside to fair value.
Asking €650,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €705,384 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 80 · Materials 85 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · 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 €705,384 + condition +€25,250 + location +€62,074 = modelled fair value of €792,708 (€3,924/m²), a €142,708 (22.0%) gap versus the €650,000 asking price.
Short-term vacation rental The property’s proximity to key Algarve tourist destinations justifies its appeal in the short-term vacation rental market, despite a gross yield of only 3.8%. With a fair value of €792,708, the current listing price of €650,000 presents an attractive opportunity for investors seeking yield generation through tourism. Buy-and-hold This property represents a strong buy-and-hold investment, as its fair value exceeds the listing price by 22.0%, indicating long-term capital appreciation potential. With a solid condition rating of 84/100 and good neighborhood amenities, it strengthens the case for sustained rental demand over time. Long-term rental Despite the modest gross yield of 3.8%, the property is strategically positioned in an area boosted by tourism, ensuring steady demand for long-term rentals. Given the gap between the listing price and fair value, this apartment can serve as a reliable long-term investment in a growing market. Not ideal for student housing The property is less suited for student housing due to its size and location, which cater more to families and vacationers. Additionally, the neighborhood's overall quality may not align with student rental expectations. Not ideal for luxury market Given the average condition and neighborhood rating, this property does not meet the typical standards of the luxury market. Investors in this segment would likely find better opportunities that align with their expectations of premium pricing and exclusivity.
Economic Sensitivity Risk: With an economic stability score of 65/100, there is a potential risk of decreased demand and tenant turnover if economic conditions worsen.
