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.
3-bedroom, 2-bathroom apartment of 131 m² on the 2nd floor, built in 1986, energy rating C. Located on rua Dom Diogo de Sousa, 35, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes a common terrace offering unobstructed sea views, enhancing outdoor leisure opportunities without compromising privacy in a tranquil residential community.
The valuation. The asking price of €370,000 sits €133,942 (36.2%) below its fair value of €503,942, indicating that the property is subvalued. This presents a compelling opportunity for savvy investors looking to maximize returns.
Fair value modelled at €503,942 from the area baseline, adjusted for condition and location. Asking €370,000 sits €133,942 (36.2%) below — the upside to fair value.
Asking €370,000 versus the rua Dom Diogo de Sousa, 35 area baseline of €514,175 (€3,925/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 68 · Materials 72 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 81/100 (Housing Market 80 · Amenities 85 · Economic 65 · Tenant Quality 85). Strong amenities and housing-market momentum support a premium to baseline.
rua Dom Diogo de Sousa, 35
Area baseline €514,175 + condition -€10,234 + location +€56,724 = modelled fair value of €503,942 (€3,847/m²), a €133,942 (36.2%) gap versus the €370,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Dom Diogo de Sousa, 35 | Subject | €370,000 | €2,824 | — | 68 | 81 |
| rua Frei António da Purificação | Active | €369,000 | €3,968 | 40.5% | 75 | 77 |
| São Gonçalo de Lagos · 6fbc43 | Active | €330,000 | €2,538 | 10.1% | 66 | 70 |
| rua de Santo Amaro, 18 | Active | €280,000 | €4,308 | 52.5% | 65 | 72 |
| parque do Moínho | Active | €375,000 | €4,310 | 52.6% | 65 | 67 |
| Median comp | €349,500 | €4,138 | 46.5% | 66 | 71 |
Short-term vacation rental The 3-bed apartment in São Gonçalo de Lagos presents a compelling opportunity for short-term vacation rental due to its 5.2% gross yield and strong market demand driven by tourism in the Algarve. With current pricing at €370,000, it is significantly underpriced compared to its fair value of €503,942, indicating a favorable entry point for investors seeking high occupancy rates. Long-term rental Investing in this property for long-term rental is attractive given its good condition rating of 70/100 and a neighborhood rating of 81/100, which reflects a healthy tenant quality. The gap from the fair value of €503,942 further emphasizes that the acquisition price of €370,000 is suboptimal, positioning it as an excellent value for securing steady rental income. Buy-and-hold This property serves as a strategic buy-and-hold investment, with its solid neighborhood amenities and potential for appreciation in value, supported by the 36.2% gap from fair value. The undervaluation at €370,000 offers an attractive long-term equity growth opportunity in the burgeoning Algarve housing market.
Economic Vulnerability The economic stability score of 65/100 indicates potential exposure to regional economic downturns that could impact rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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