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.
0-bedroom, 2-bathroom mix_use_building of 239 m², built in 2003, energy rating B. Located on rua da Abrótea, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Unique Feature: The ground floor's open space kitchen is designed specifically for takeaway operations, enhancing its operational flexibility in a bustling commercial district of Lagos.
The valuation. The asking price of €835,000 is €64,092 (7.7%) below its fair value of €899,092, indicating the property is underpriced. This presents an attractive opportunity for investors seeking value. Buy-to-flip angle. The property can be renovated to enhance its appeal, aiming for a swift resale at a premium in a sought-after location. Targeting the Algarve's tourist market can maximize returns quickly. Buy-to-let angle. With its current condition and mixed-use zoning, this property could be marketed as a short-term vacation rental, capitalizing on Algarve tourism demand, although it currently shows a gross yield of 0%.
Fair value modelled at €899,092 from the area baseline, adjusted for condition and location. Asking €835,000 sits €64,092 (7.7%) below — the upside to fair value.
Asking €835,000 versus the rua da Abrótea area baseline of €834,588 (€3,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 70 · Materials 75 · Room dimensions 74). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Abrótea
Area baseline €834,588 + condition -€5,602 + location +€70,105 = modelled fair value of €899,092 (€3,762/m²), a €64,092 (7.7%) gap versus the €835,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Abrótea | Subject | €835,000 | €3,494 | — | 70 | 71 |
| São Gonçalo de Lagos · 8d9fba | Active | €835,000 | €3,494 | 0% | 72 | 75 |
| São Gonçalo de Lagos · ba57e3 | Active | €1,086,000 | €3,851 | 10.2% | — | 72 |
| São Gonçalo de Lagos · 956cba | Active | €400,000 | €3,922 | 12.2% | 75 | 76 |
| São Gonçalo de Lagos · 389d37 | Active | €290,000 | €5,273 | 50.9% | 68 | 66 |
| Median comp | €617,500 | €3,887 | 11.2% | 72 | 74 |
Short-term vacation rental Given the robust demand for tourism-driven housing in the Algarve region, this property is well-positioned for profitable short-term vacation rentals. With an attractive price, currently listed at €835,000, it offers a 7.7% gap below the fair value, suggesting potential for substantial revenue generation. Buy-and-hold Investing in this property for a buy-and-hold strategy is supported by the enduring demand in the tourism sector, ensuring stable appreciation over time. With its favorable valuation, this investment can yield significant long-term returns, given the current market dynamics in Lagos. Value-add renovation This property presents an opportunity for value-add renovation, capitalizing on its 74/100 condition rating to enhance its appeal and market value. By addressing the renovation potential, investors can realize returns that exceed the existing fair market value of €899,092, especially in a neighborhood with solid housing demand. Not ideal for student housing The property does not cater well to the student housing market, as it lacks adequate amenities and proximity to robust school infrastructure. Moreover, the moderate neighborhood score of 71/100 further diminishes its appeal for long-term student rentals. Not ideal for luxury market This property falls short for the luxury market segment, as it does not align with the high standards typically expected by luxury buyers. Additionally, its condition and neighborhood rating suggest it may not meet the premium requirements of luxury investments in the area. Not ideal for long-term rental Given the current conditions and limited amenities, this property is less suited for long-term rental scenarios. The property’s gross yield of 0% further emphasizes its lack of viability for generating stable, long-term rental income.
Potential Economic Downturn The economic stability score of 65/100 indicates a moderate risk of economic downturns that could affect the property's value and rental income.
