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 studio of 78 m², built in 1984, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Feature: The apartment includes a pantry, enhancing storage options and functionality for modern living in a well-maintained space close to essential amenities.
The valuation. The asking price of €235,000 sits €54,771 below the fair value of €289,771, indicating the property is subvalued by 23.3%, making this an attractive opportunity for potential buyers. Buy-to-flip angle. With careful renovations, this property could be resold at a significant markup, appealing to both first-time homebuyers and investors in the growing Algarve market. Buy-to-let angle. The estimated rental income of €960/month provides a gross yield of 4.9%, positioning the property well for steady long-term cash flow in the popular tourist destination of São Gonçalo de Lagos.
Fair value modelled at €289,771 from the area baseline, adjusted for condition and location. Asking €235,000 sits €54,771 (23.3%) below — the upside to fair value.
Asking €235,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €304,590 (€3,905/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 72 · Materials 70 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
São Gonçalo de Lagos, Lagos, Faro
Area baseline €304,590 + condition -€5,484 + location +€22,880 = modelled fair value of €289,771 (€3,715/m²), a €54,771 (23.3%) gap versus the €235,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 4a7d6a | Subject | €235,000 | €3,013 | — | 72 | 71 |
| praça da Paz | Active | €315,000 | €2,944 | 2.3% | 70 | 70 |
| São Gonçalo de Lagos · f3606a | Active | €395,000 | €3,160 | 4.9% | 70 | 70 |
| rua General Humberto Delgado | Active | €395,000 | €3,160 | 4.9% | 68 | 67 |
| São Gonçalo de Lagos · 96c473 | Active | €285,000 | €2,740 | 9.0% | 54 | 72 |
| Median comp | €355,000 | €3,052 | 1.3% | 69 | 70 |
Long-term rental The property in São Gonçalo de Lagos is subvalued by 23.3% compared to its fair value of €289,771, presenting an attractive opportunity for generating stable rental income in a seasonal tourist region. With a gross yield of 4.9% and a condition rating of 71/100, the property is well-positioned to attract long-term tenants looking for quality accommodations. Short-term vacation rental With strong tourist demand in the Coastal Algarve region, this property represents an appealing investment for short-term vacation rental opportunities, being subvalued by €54,771 based on fair value assessments. The combination of a favorable yield and an attractive location makes it ideal for capitalizing on the booming tourism market, albeit the seasonal nature of the economy. Buy-and-hold Investing in this property as a buy-and-hold strategy can yield significant returns, considering its current listing price is 23.3% lower than its fair value, indicating potential appreciation over time. Its condition and neighborhood ratings suggest that, with effective property management, it can maintain a desirable status within the market. Not ideal for The property is not suitable for student housing, luxury market investments, or industrial investments due to its characteristics and location, which cater more to residential and vacation markets. These factors suggest that investors should focus on segments that align with the property’s strengths and local demand dynamics.
Economic Vulnerability The economic stability score of 55 indicates a potential risk due to fluctuating economic conditions that could impact rental income.
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