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, 1-bathroom apartment of 67 m² on the 1st floor, built in 1994, energy rating E. Located on rua da Bela Vista, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This apartment's modern design is complemented by a practical dining counter that separates the open-plan kitchen and living area, enhancing both functionality and aesthetics.
The valuation. The asking price of €260,000 is significantly lower than the fair value of €338,957, showing a discrepancy of €78,957 (23.3%). This indicates the property is currently underpriced. Buy-to-flip angle. This property can be quickly renovated to enhance its appeal and then resold at a higher price, capitalizing on its advantageous location and recent upgrades. With a focused improvement strategy, a profitable flip is achievable in this competitive market. Buy-to-let angle. The estimated rental income of approximately €1,235 per month offers a gross yield of 5.7%, making it an attractive option for buy-and-hold investors. The vibrant tourism in the Algarve region further supports strong demand for long-term rentals.
Fair value modelled at €338,957 from 6 comparable sales in the area. Asking €260,000 sits €78,957 (23.3%) below — the upside to fair value.
Asking €260,000 versus the rua da Bela Vista area baseline of €304,803 (€4,549/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €304,803, adjusted for condition and micro-location, gives a modelled fair value of €338,957 (€5,059/m²), a €78,957 (23.3%) gap versus the €260,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Bela Vista | Subject | €260,000 | €3,881 | — | 74 | 70 |
| São Gonçalo de Lagos · 49b696 | Active | €480,000 | €5,854 | 50.8% | 75 | 67 |
| São Gonçalo de Lagos · 25f45c | Active | €325,000 | €3,652 | 5.9% | 74 | 79 |
| praça da Paz S / N | Active | €325,000 | €3,693 | 4.8% | 63 | 74 |
| rua dos Peixeiros | Active | €400,000 | €7,143 | 84.1% | 65 | 80 |
| Median comp | €362,500 | €4,774 | 23.0% | 70 | 77 |
Short-term vacation rental Given the property’s attractive location in the Algarve region, the short-term vacation rental strategy is favorable due to high tourism demand and the proximity to coastal amenities, which can drive occupancy rates. With a gross yield of 5.7% and the property underpriced by 23.3% relative to its fair value, this investment could yield solid cash flow over time. Buy-and-hold Investing in this property as a buy-and-hold strategy is promising, considering its quality rating of 77/100 and the appealing neighborhood score of 70/100, which suggests stability and tenant demand. Given the gap to fair value of 23.3%, holding the property long-term may result in significant appreciation. Value-add renovation A value-add renovation approach can enhance the returns on this property, as minor improvements could increase both rental income and property value, leveraging its current fair value gap of 23.3%. The good condition score of 77/100 indicates that while renovation can enhance value, the property may already be suitable for immediate rental. Not ideal for student housing Given that this property is in a tourist-centric area, it is less suited for student housing, where demand can be inconsistent. The demographics and economic cycles of the area favor short-term vacation renters over long-term student leases. Not ideal for luxury market The pricing and property specifications indicate that it does not align with the luxury market demands, which typically require higher-end finishes and exclusivity. Positioned as a tourist rental, this property caters better to those seeking affordability rather than luxury qualities.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of economic downturns that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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