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, 0-bathroom apartment of 108 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. Notable Features: This apartment includes a spacious balcony ideal for al fresco dining, and it benefits from abundant natural light with sea views enhancing its appeal as a rental investment.
The valuation. The asking price of €385,000 sits slightly below the fair value of €391,563, representing a difference of €6,563 or 1.7%. This property is fairly priced considering its location and features. Buy-to-flip angle. The potential resale strategy is straightforward, targeting immediate buyers in the lucrative Algarve market for a light renovation that could increase appeal and sale price. Short-term cosmetic upgrades will enable a quicker turnover. Buy-to-let angle. With an estimated rental income of €1,412/month, the property offers a gross yield of 4.4%. This provides steady cash flow and a viable option for both short-term vacation and long-term rentals in a high-demand area.
Fair value modelled at €391,563 from 6 comparable sales in the area. Asking €385,000 sits €6,563 (1.7%) below — the upside to fair value.
Asking €385,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €398,893 (€3,693/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 is below the parish average, reducing 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 €398,893, adjusted for condition and micro-location, gives a modelled fair value of €391,563 (€3,626/m²), a €6,563 (1.7%) gap versus the €385,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 07f8bb | Subject | €385,000 | €3,565 | — | 63 | 71 |
| São Gonçalo de Lagos · 144046 | Active | €310,000 | €3,131 | 12.2% | 65 | 65 |
| rua do Compromisso Marítimo, 27 | Active | €295,000 | €3,278 | 8.1% | 70 | 68 |
| rua Antero de Quental | Active | €355,000 | €3,817 | 7.1% | 70 | 72 |
| São Gonçalo de Lagos · 57fb25 | Active | €575,000 | €3,594 | 0.8% | 72 | 73 |
| Median comp | €332,500 | €3,436 | 3.6% | 70 | 70 |
Short-term vacation rental Short-term vacation rental potential is limited, as the fair value aligns closely with the listing price, indicating low prospect for immediate appreciation. The gross yield of 4.4% suggests a moderate return but does not adequately offset the premium on this property. Long-term rental The property may serve as a long-term rental, offering acceptable yield at 4.4%; however, the fair valuation suggests inherent risks associated with profitability. Given that the neighborhood maintains a decent rating of 71/100, tenant quality should be reasonable yet may lack long-term viability due to market dynamics. Buy-and-hold As a buy-and-hold investment, the property is fairly priced, with a gap of just 1.7% to its fair value, hinting at limited immediate capital appreciation potential. Its moderate condition score of 68/100 coupled with the broader economic context may affect long-term value growth in the competitive Algarve market.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 70/100, there remains a significant risk of potential market volatility impacting rental income and occupancy rates.
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