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 88 m² on the 4th floor, built in 1978, energy rating D. Located on praça da Paz S / N, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment boasts abundant natural light through large windows, enhancing the spaciousness of the living areas and providing a bright, airy atmosphere throughout the home.
The valuation. The asking price of €325,000 sits slightly below the fair value of €344,909, indicating a difference of €19,909, or 5.8%. This positions the property as fairly valued within the current market. Buy-to-flip angle. The resale strategy involves investing in minor improvements to enhance appeal, enabling a potential resale at a higher price point in a competitive market. Targeting both local buyers and investors will maximize profit margins. Buy-to-let angle. Aiming for long-term rental, the estimated gross yield of 4.4% provides a monthly income of approximately €1,192, securing steady cash flow in the tourism-driven Algarve market. This ensures a viable return on investment over time.
Fair value modelled at €344,909 from 6 comparable sales in the area. Asking €325,000 sits €19,909 (5.8%) below — the upside to fair value.
Asking €325,000 versus the praça da Paz S / N area baseline of €317,783 (€3,611/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €317,783, adjusted for condition and micro-location, gives a modelled fair value of €344,909 (€3,919/m²), a €19,909 (5.8%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praça da Paz S / N | Subject | €325,000 | €3,693 | — | 63 | 74 |
| rua Brigadeiro Costa Franco, 3 | Active | €375,000 | €3,676 | 0.5% | 70 | 67 |
| parque do Moínho | Active | €372,000 | €3,796 | 2.8% | 72 | 70 |
| rua Gago Coutinho, 3 | Active | €350,000 | €5,224 | 41.4% | 76 | 74 |
| rua da Galé, 23C | Active | €410,000 | €3,796 | 2.8% | 72 | 74 |
| Median comp | €373,500 | €3,796 | 2.8% | 72 | 72 |
Short-term vacation rental This property has a strong potential for short-term vacation rentals given its proximity to Algarve's thriving tourism market. However, with a fair value of €344,909 versus a listing price of €325,000, the investment reflects a modest yield of 4.4%, indicating that the property is fairly priced rather than a bargain. Long-term rental As a long-term rental investment, the apartment benefits from the stable demand in São Gonçalo de Lagos, enhanced by the region's solid economic foundation linked to tourism. While the listing price is fair at €325,000, the gross yield of 4.4% suggests adequate returns without substantial upside potential. Buy-and-hold Investing in this property as a buy-and-hold strategy aligns with the overall health of the housing market in the Algarve, supported by ongoing demand driven by tourism. Given that it is priced at €325,000, slightly below its fair value of €344,909, the potential for immediate capital appreciation may be limited, reflecting the fair valuation status of this asset.
Economic Vulnerability The economic stability score of 65/100 suggests a moderate risk of economic downturns affecting property value and cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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