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, 2-bathroom apartment of 106 m² on the 6th floor, built in 1994, energy rating F. Located on rua da Ameijeira, 9, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Property Highlights: The top-floor apartment features direct balcony access from the living area, enhancing the indoor-outdoor flow and optimizing the stunning sea views beyond the 106m² layout.
The valuation. The asking price of €420,000 is significantly below the fair value of €539,172, representing a discount of €119,172 (22.1%). This makes the property an attractive investment opportunity for buyers seeking value. Buy-to-flip angle. A buy-to-flip strategy could leverage the potential for immediate resale at a higher price point post-renovation, particularly given its high-quality condition and aesthetic appeal in a tourist-driven area. Buy-to-let angle. The property offers a gross yield of 3.9%, with an estimated rental income of €1,365/month, capitalizing on the seasonal demand driven by tourism in the neighborhood, ensuring steady cash flow for investors.
Fair value modelled at €539,172 from 6 comparable sales in the area. Asking €420,000 sits €119,172 (22.1%) below — the upside to fair value.
Asking €420,000 versus the rua da Ameijeira, 9 area baseline of €468,227 (€4,417/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 is above the parish average, lifting 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 €468,227, adjusted for condition and micro-location, gives a modelled fair value of €539,172 (€5,087/m²), a €119,172 (22.1%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Ameijeira, 9 | Subject | €420,000 | €3,962 | — | 85 | 76 |
| rua Gago Coutinho, 3 | Active | €350,000 | €5,224 | 31.8% | 76 | 74 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 47.7% | 75 | 67 |
| rua Doutor Francisco Sá Carneiro, 4 | Active | €360,000 | €5,000 | 26.2% | 78 | 74 |
| São Gonçalo de Lagos · be9364 | Active | €650,000 | €5,118 | 29.2% | 80 | 65 |
| Median comp | €420,000 | €5,171 | 30.5% | 77 | 71 |
Short-term vacation rental The property, given its favorable condition rating of 87/100 and its location in a tourism-driven area, presents an attractive opportunity for short-term vacation rental income. With a gap of 22.1% below the fair value, this strategy could yield enhanced returns as demand for holiday accommodation remains strong. Buy-and-hold The buy-and-hold strategy is sound for this property due to its good yield of 3.9% gross and a stable neighborhood rating of 76/100, underscoring its appeal to both tourists and long-term renters alike. Being 22.1% underpriced relative to its fair value, this property offers a compelling addition to a long-term investment portfolio. Value-add renovation Investing in value-add renovations could significantly elevate the property's appeal and rental potential, especially with its already high condition score of 87/100. The existing gap of 22.1% to fair value suggests that there is room for improvement that could yield substantial returns post-renovation. Not ideal for student housing The property's location and characteristics may not cater well to the student housing market, as it draws more from tourism rather than long-term residents seeking educational accommodations. Additionally, the existing conditions and neighborhood dynamics don't align with typical student housing demands. Not ideal for luxury market This property does not fit the luxury market profile, given its pricing and the economic stability driven by seasonal tourism rather than high-end demand. The apartment's characteristics and neighborhood rating suggest a more moderate segment rather than luxury positioning.
Economic vulnerability The economic stability score of 70/100 indicates a moderate risk of fluctuations in the local economy that could affect property value and rental income.
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