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 137 m², built in 2010, energy rating B. Located on rua Francisco Xavier Ataíde de Oliveira, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment includes a spacious west-facing private terrace with a built-in barbecue, perfect for outdoor gatherings and enjoying the pleasant street view.
The valuation. The asking price of €425,000 is significantly below the fair value of €520,731, making it subvalued by €95,731 (22.5%). This presents a compelling opportunity for investors looking to capitalize on market inefficiencies.
Fair value modelled at €520,731 from the area baseline, adjusted for condition and location. Asking €425,000 sits €95,731 (22.5%) below — the upside to fair value.
Asking €425,000 versus the rua Francisco Xavier Ataíde de Oliveira area baseline of €478,404 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 75 · Materials 78 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Francisco Xavier Ataíde de Oliveira
Area baseline €478,404 + condition +€2,141 + location +€40,186 = modelled fair value of €520,731 (€3,801/m²), a €95,731 (22.5%) gap versus the €425,000 asking price.
Short-term vacation rental The property boasts a fair value of €520,731 compared to its listing price of €425,000, presenting an attractive opportunity for maximizing rental income in a tourist hotspot. With a gross yield of 4.7% and favorable neighborhood conditions, it aligns well with the demand for short-term accommodations in the Algarve region. Buy-and-hold With a current listing that is 22.5% below fair value, this property is positioned for appreciation over time, making it a compelling buy-and-hold investment. The mix of a decent yield and a growing local economy suggests the potential for long-term capital growth. Family rental Offering ample space with 137m² and a neighborhood rating of 71/100, this apartment is well-suited for families looking to settle in the Algarve. The underpriced nature of this asset indicates a strong platform for attractive rental rates amidst increasing demand for family housing. Not ideal for Despite the positives in other areas, this property does not suit the specific metrics for student housing, industrial investments, or the luxury market given its characteristics and location. The existing conditions make it less competitive in these segments compared to residential family or vacation rentals.
Economic Vulnerability The property faces a potential economic downturn risk due to a relatively low economic stability score of 65/100, which may affect tenant demand and rental income.
