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.
4-bedroom, 1-bathroom apartment of 107 m², built in 1978, energy rating C. Located on praça da Paz, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Features: This centrally located apartment boasts a closed-glazed balcony integrated into the kitchen, and it includes double-glazed windows for improved thermal and acoustic insulation.
The valuation. The property is asking €315,000, which is €77,167 (24.5%) below its fair value of €392,167. This presents an opportunity for potential appreciation. Buy-to-flip angle. Acquiring the apartment at this price allows for a strategic flip post-renovation, capitalizing on the demand in this desirable Algarve market. Buy-to-let angle. Given the location's tourist appeal, a short-term vacation rental strategy could yield strong rental returns despite the current gross yield being 0% due to no existing rental agreements.
Fair value modelled at €392,167 from the area baseline, adjusted for condition and location. Asking €315,000 sits €77,167 (24.5%) below — the upside to fair value.
Asking €315,000 versus the praça da Paz area baseline of €417,835 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 66 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
praça da Paz
Area baseline €417,835 + condition -€11,369 + location +€29,892 = modelled fair value of €392,167 (€3,665/m²), a €77,167 (24.5%) gap versus the €315,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praça da Paz | Subject | €315,000 | €2,944 | — | 70 | 70 |
| São Gonçalo de Lagos · 4a7d6a | Active | €235,000 | €3,013 | 2.3% | 72 | 71 |
| rua General Humberto Delgado | Active | €395,000 | €3,160 | 7.3% | 68 | 67 |
| São Gonçalo de Lagos · f3606a | Active | €395,000 | €3,160 | 7.3% | 70 | 70 |
| São Gonçalo de Lagos · 1e6013 | Active | €385,000 | €2,070 | 29.7% | 73 | 71 |
| Median comp | €390,000 | €3,087 | 4.8% | 71 | 71 |
Short-term vacation rental This property presents an enticing opportunity for short-term vacation rental given its location in the Algarve, a popular destination for tourists. The potential for strong rental income is backed by the fair value assessment indicating a substantial gap of 24.5% from the listing price. Buy-and-hold Investors looking for buy-and-hold strategies can benefit from this property’s position in a desirable neighbourhood, which scores a solid 70/100. With a fair value significantly higher than the listing price, there is room for appreciation in the long run. Long-term rental The apartment is well-positioned for long-term rental given the neighborhood's favorable score of 70/100, suggesting good tenant quality. The current pricing reflects a strategic entry point for landlords who may benefit from rental demand in this thriving region. Not ideal for student housing This property is not well-suited for student housing due to its proximity to less academic infrastructure, reflected in the lower neighbourhood scores. Additionally, the lack of amenities geared towards students limits its attractiveness in this sector. Not ideal for luxury market Given the property’s condition rating of 68/100, it may not meet the expectations of the luxury market, which typically demands high-quality finishes and features. As such, it does not align with the income potential typically associated with high-end rentals. Not ideal for industrial investment The apartment's focus on residential living makes it an unsuitable choice for industrial investment strategies, as the property lacks the necessary infrastructure for such purpose. Investors should consider other options that better align with industrial investment criteria in this region.
Economic Vulnerability The economic stability score of 60 indicates potential susceptibility to market fluctuations, which may impact rental income and property value.
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