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, 1-bathroom apartment of 106 m², built in 2003, energy rating D. Located on rua Mendonça Pessanha, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment features a unique blend of modern amenities and historical charm, with pedestrian access to local shops and vibrant cultural experiences just steps away. Additional Context: The lively atmosphere of the historic center enhances the appeal as both a personal residence and an attractive investment opportunity.
The valuation. The asking price of €310,000 is significantly below the fair value of €391,990, indicating a difference of €81,990 (26.4%). This property presents an excellent opportunity as it is underpriced in the current market.
Fair value modelled at €391,990 from the area baseline, adjusted for condition and location. Asking €310,000 sits €81,990 (26.4%) below — the upside to fair value.
Asking €310,000 versus the rua Mendonça Pessanha area baseline of €370,152 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 68 · Materials 77 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 75 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Mendonça Pessanha
Area baseline €370,152 + condition -€6,294 + location +€28,132 = modelled fair value of €391,990 (€3,698/m²), a €81,990 (26.4%) gap versus the €310,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Mendonça Pessanha | Subject | €310,000 | €2,925 | — | 68 | 69 |
| São Gonçalo de Lagos · 38932b | Active | €325,000 | €3,250 | 11.1% | 68 | 70 |
| praça do Poder, 7A | Active | €350,000 | €3,241 | 10.8% | 75 | 70 |
| rua das Gaivotas | Active | €300,000 | €2,419 | 17.3% | 72 | 64 |
| São Gonçalo de Lagos · 25f45c | Active | €325,000 | €3,652 | 24.9% | 74 | 79 |
| Median comp | €325,000 | €3,246 | 11.0% | 73 | 70 |
Short-term vacation rental The property in São Gonçalo de Lagos, listed at €310,000, presents an opportunity with a fair value of €391,990, indicating a potential upside of 26.4%. With a gross yield of 4.8%, it is well-positioned to capitalize on the Algarve’s strong tourism demand. Long-term rental At a listing price significantly below its fair value, this 2-bed apartment has the potential to attract reliable tenants in a desirable location, given its neighborhood scores of 69/100. The property’s gross yield of 4.8% underscores its appeal as a solid long-term investment in the growing rental market of Lagos. Buy-and-hold Investing in this subvalorizada property allows for capital appreciation over time, as it stands to benefit from the ongoing growth in the Algarve housing market. With a current fair value of €391,990 and appealing rental yields, it is a smart choice for a buy-and-hold strategy aimed at long-term returns.
Economic Volatility Risk With an economic stability score of 55/100, there is a heightened risk of economic fluctuations that could negatively impact rental income and property value.
