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 125 m², built in 1995, energy rating C. Located on rua General Humberto Delgado, São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment boasts high-quality materials and boasts a well-designed layout that enhances the flow between spacious living areas, ideal for family gatherings and socializing.
The valuation. The asking price of €395,000 is €55,166 or 14.0% below the fair value of €450,166, indicating the property is underpriced. This creates an attractive entry point for potential investors. Buy-to-flip angle. With strategic cosmetic updates, the buy-to-flip approach could realize a swift resale at a higher market value, capitalizing on the property’s underpriced status. Enhancing its appeal can lead to an estimated profit margin upon resale. Buy-to-let angle. The gross yield is estimated at 5.3%, with potential rental income of approximately €1,745 per month. Given the location’s tourist demand, a short-term vacation rental strategy could further increase profitability through higher seasonal rates.
Fair value modelled at €450,166 from the area baseline, adjusted for condition and location. Asking €395,000 sits €55,166 (14.0%) below — the upside to fair value.
Asking €395,000 versus the rua General Humberto Delgado area baseline of €488,125 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 (Condition 68 · Materials 70 · Room dimensions 64). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 67/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua General Humberto Delgado
Area baseline €488,125 + condition -€16,016 + location +€29,682 = modelled fair value of €450,166 (€3,601/m²), a €55,166 (14.0%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua General Humberto Delgado | Subject | €395,000 | €3,160 | — | 68 | 67 |
| São Gonçalo de Lagos · 1e6013 | Active | €385,000 | €2,070 | 34.5% | 73 | 71 |
| São Gonçalo de Lagos · 6d5147 | Active | €372,000 | €3,179 | 0.6% | 72 | 73 |
| São Gonçalo de Lagos · 96c473 | Active | €285,000 | €2,740 | 13.3% | 54 | 72 |
| praça da Paz | Active | €315,000 | €2,944 | 6.8% | 70 | 70 |
| Median comp | €343,500 | €2,842 | 10.1% | 71 | 72 |
Short-term vacation rental This 3-bed apartment in São Gonçalo de Lagos, listed at €395,000, has strong potential for short-term vacation rental due to its proximity to a popular Algarve tourist area. With a gross yield of 5.3% and a fair value of €450,166, the property is subvalued by 14.0%, making it an attractive option for investors seeking high returns. Long-term rental The property’s 5.3% gross yield reflects solid potential for long-term rental in an area driven by tourism and expat interest, suggesting a reliable stream of income. Its listing price of €395,000 presents an opportunity to capitalize on a property that is currently subvalued compared to its fair value of €450,166. Buy-and-hold Investing in this apartment as a buy-and-hold strategy is appealing, as the housing market in Lagos is influenced by continual demand from tourists and expats. The property's fair value of €450,166 shows that it is not only subvalued at €395,000 but also holds promise for appreciation in the long run.
Economic Vulnerability Risk The property has an economic stability score of 60/100, indicating potential challenges in maintaining consistent cash flow due to local economic factors.
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