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 107 m² on the 1st floor, built in 2002, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment features newly installed air conditioning and a modern boiler, ensuring year-round comfort while offering breathtaking views of the golf course and surrounding countryside from its balconies.
The valuation. The asking price of €425,000 is significantly below the fair value of €577,884, representing a discount of €152,884 (26.5%). This sets the stage for a profitable investment opportunity in a desirable area.
Fair value modelled at €577,884 from 2 comparable sales in the area. Asking €425,000 sits €152,884 (26.5%) below — the upside to fair value.
Asking €425,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €533,086 (€4,982/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €533,086, adjusted for condition and micro-location, gives a modelled fair value of €577,884 (€5,401/m²), a €152,884 (26.5%) gap versus the €425,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 4a42ae | Subject | €425,000 | €3,972 | — | 72 | 61 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 47.4% | 75 | 67 |
| estrada de Porto de Mós S / N | Active | €475,000 | €4,948 | 24.6% | 75 | 72 |
| Median comp | €477,500 | €5,401 | 36.0% | 75 | 70 |
Short-term vacation rental\nThe property in São Gonçalo de Lagos is well-positioned to capitalize on the Algarve's strong tourism influence, making it an excellent candidate for short-term vacation rentals. With a gross yield of 4.8% and a price 26.5% below its fair value, this investment offers potential for both strong returns and appreciation in a coastal area known for its attractiveness to tourists.\n\nBuy-and-hold\nConsidering the property’s current listing price of €425,000 is significantly below its fair value of €577,884, this buy-and-hold strategy presents a favorable long-term investment opportunity. The decent condition rating of 75/100 suggests it will likely maintain its value over time, bolstering its appeal in an area with a healthy property market.\n\nFamily rental\nWith the neighborhood receiving a score of 61/100, this 2-bed apartment could serve as a stable family rental, appealing to local families or long-term residents. Its pricing position, 26.5% under fair market value, enhances its attractiveness for family living in an area that often sees demand for more permanent housing solutions.
Economic Vulnerability With an economic stability score of 55, the property is at risk of market fluctuations impacting rental demand and property value. Tenant Stability Risk The tenant stability score of 60 indicates a moderate risk of tenant turnover, which could lead to increased vacancy rates and loss of rental income.
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