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 155 m² on the 3rd floor, built in 2002, energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Noteworthy Features: The apartment boasts a large terrace ideal for outdoor dining while enjoying panoramic sea views, enhancing the overall living experience in a sought-after coastal location.
The valuation. The asking price of €505,000 is very close to the fair value of €507,591, representing a slight difference of €2,591 or 0.5%. This indicates that the property is fairly priced in the current market. Buy-to-flip angle. A buy-to-flip strategy may involve minor renovations to enhance appeal, aiming for a profit by targeting the upper end of the market in this tourist-friendly region. Quick sales could capitalize on the high demand. Buy-to-let angle. The estimated rental income of €1,389 per month yields approximately 3.3%, making it an attractive option for buy-and-hold investors seeking steady cash flow in a thriving rental market.
Fair value modelled at €507,591 from 6 comparable sales in the area. Asking €505,000 sits €2,591 (0.5%) below — the upside to fair value.
Asking €505,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €441,166 (€2,846/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €441,166, adjusted for condition and micro-location, gives a modelled fair value of €507,591 (€3,275/m²), a €2,591 (0.5%) gap versus the €505,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 7caa59 | Subject | €505,000 | €3,258 | — | 78 | 75 |
| parque do Moínho | Active | €362,500 | €3,152 | 3.3% | 74 | 72 |
| rua Paolo Cocco | Active | €390,000 | €3,333 | 2.3% | 75 | 67 |
| São Gonçalo de Lagos · b7b679 | Active | €895,000 | €3,266 | 0.3% | 85 | 74 |
| rua de Santo Amaro | Active | €545,000 | €3,283 | 0.8% | 78 | 72 |
| Median comp | €467,500 | €3,275 | 0.5% | 77 | 72 |
Short-term vacation rental The apartment's location in the Algarve, a popular tourist destination, supports its appeal as a short-term vacation rental, enabling potential owners to leverage high occupancy rates. However, the current rental yield of 3.3% may not fully justify the investment, given its fair price alignment. Buy-and-hold The property is positioned in an economically sound area driven by tourism, making it a reasonable option for a buy-and-hold strategy despite limited growth prospects indicated by the minor gap from fair value. Investors should weigh the modest yield against market fluctuations before committing to long-term ownership. Family rental With a solid condition rating of 81/100 and a fair valuation, the apartment could appeal to families seeking quality living in a tourist-friendly area; however, the prevailing yield of 3.3% may hinder overall attractiveness for this strategy. Aspiring landlords might encounter challenges given the competitive rental landscape dominated by vacation rentals in the neighbourhood.
Economic vulnerability The Economic stability score of 70/100 indicates a moderate risk as the local economy may face fluctuations that could impact rental income stability or 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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