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, 3-bathroom apartment of 153 m² on the 7th floor, energy rating E. Located on rua da Torraltinha, São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: This top-floor apartment offers uninterrupted panoramic sea views, private balconies for each bedroom, and no neighbors above, ensuring enhanced privacy and tranquility in a vibrant coastal setting.
The valuation. The asking price of €656,000 is significantly below the fair value of €1,225,305, reflecting a potential discount of €569,305 (46.5%). This property is clearly underpriced relative to its market worth. Buy-to-flip angle. A resale strategy could capitalize on the property’s underpriced status, allowing for a potential quick profit post-renovation or through effective marketing at a higher price. The demand in Algarve positions this property favorably for a flip. Buy-to-let angle. With an estimated gross yield of 2.9% (~€1,585/month), the property has sound rental potential, particularly as a short-term vacation rental in a sought-after tourist region, ensuring steady cash flow.
Fair value modelled at €1,225,305 from 2 comparable sales in the area. Asking €656,000 sits €569,305 (46.5%) below — the upside to fair value.
Asking €656,000 versus the rua da Torraltinha area baseline of €1,146,337 (€7,492/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €1,146,337, adjusted for condition and micro-location, gives a modelled fair value of €1,225,305 (€8,009/m²), a €569,305 (46.5%) gap versus the €656,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Torraltinha | Subject | €656,000 | €4,288 | — | 80 | 70 |
| rua do Barinel, 3 | Active | €780,000 | €5,098 | 18.9% | 83 | 73 |
| rua da Ameijeira, 9 | Active | €420,000 | €3,962 | 7.6% | 85 | 76 |
| Median comp | €600,000 | €4,530 | 5.7% | 84 | 75 |
Short-term vacation rental The property is strategically positioned in the Algarve, a region with strong seasonal tourism appeal, creating an opportunity for lucrative short-term vacation rentals. Given its fair value of €1,225,305 versus the listing price of €656,000, investors can anticipate substantial returns in a thriving market. Buy-and-hold With a significant gap of 46.5% from fair value, acquiring this property represents a compelling long-term investment for buy-and-hold strategies. The combination of a stable yield of 2.9% and potential appreciation makes it an attractive addition to an investment portfolio. Value-add renovation The apartment's condition rated at 83/100 suggests it's already in good shape, yet targeted renovations could unlock even greater value against its fair market potential. With the market dynamics favoring property appreciation in the Algarve, strategic enhancements can significantly boost returns on this investment.
Tenant turnover risk The tenant stability score of 75/100 indicates a moderate level of stability, suggesting that there may be a potential risk of tenant turnover affecting rental income.
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