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 104 m², built in 1978, energy rating E. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Notable Features: The apartment includes a cozy fireplace in the open living area, enhancing the warmth and comfort of the modern design, alongside a private south-facing backyard ideal for relaxation.
The valuation. The asking price of €399,000 is below the fair value of €462,647, indicating the property is underpriced by €63,647 (13.8%). This presents a compelling opportunity for investors.
Fair value modelled at €462,647 from 6 comparable sales in the area. Asking €399,000 sits €63,647 (13.8%) below — the upside to fair value.
Asking €399,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €432,374 (€4,157/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €432,374, adjusted for condition and micro-location, gives a modelled fair value of €462,647 (€4,449/m²), a €63,647 (13.8%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 3d98b9 | Subject | €399,000 | €3,837 | — | 76 | 71 |
| rua da Bela Vista | Active | €260,000 | €3,881 | 1.1% | 74 | 70 |
| rua Gago Coutinho, 3 | Active | €350,000 | €5,224 | 36.2% | 76 | 74 |
| rua Doutor Francisco Sá Carneiro, 4 | Active | €360,000 | €5,000 | 30.3% | 78 | 74 |
| São Gonçalo de Lagos · 3df2a2 | Active | €495,000 | €4,500 | 17.3% | 72 | 72 |
| Median comp | €355,000 | €4,750 | 23.8% | 75 | 73 |
Short-term vacation rental The property in São Gonçalo de Lagos presents a compelling opportunity for short-term vacation rentals, with a fair value exceeding the listing price by 13.8%, suggesting strong potential returns in the popular Algarve tourism market. At a gross yield of 4.2%, it aligns well with the demand dynamics driven by seasonal visitors, making it a viable option for investors looking to capitalize on tourism flows. Buy-and-hold With a listing price of €399,000 compared to a fair value of €462,647, this property is positioned favorably for a buy-and-hold investment strategy, benefitting from the long-term growth potential of the Lagos real estate market. The 4.2% gross yield indicates a respectable income stream while the local amenities and safety contribute positively to tenant retention. Family rental This 2-bed apartment is well-suited for families, given the positive factors of rural safety, decent neighborhood ratings, and proximity to local amenities in São Gonçalo de Lagos. The market appears appealing for this demographic, as the property is listed below its fair value, providing an attractive opportunity for stable, long-term rental income. Not ideal for Unfortunately, the property does not fit well with student housing due to the seasonal employment factors affecting economic stability in the region, which could result in inconsistent rental demand. Additionally, the luxury market and value-add renovation strategies are less suitable as they do not align with the current property condition and overall market positioning.
Economic Vulnerability The economic stability score of 65/100 suggests potential risks in the property’s value due to economic fluctuations.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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