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, 2-bathroom apartment of 135 m², energy rating C. Located São Gonçalo de Lagos parish, Lagos municipality, Faro district. This apartment boasts high ceilings in the living area, enhancing the spacious feel and allowing for abundant natural light throughout the day.
The valuation. The asking price of €360,000 sits €22,604 below fair value at €382,604, representing a 5.9% difference. This property is valued fairly in the current market. Buy-to-flip angle. A buy-and-flip strategy may be viable, targeting a modest renovation budget to increase value and appeal, aiming for a resale near €400,000. Buy-to-let angle. With an estimated rental income of €1,590/month, the gross yield stands at 5.3%, making it an attractive long-term rental option in a tourism-driven area.
Fair value modelled at €382,604 from 6 comparable sales in the area. Asking €360,000 sits €22,604 (5.9%) below — the upside to fair value.
Asking €360,000 versus the São Gonçalo de Lagos, Lagos, Faro area baseline of €365,611 (€2,708/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €365,611, adjusted for condition and micro-location, gives a modelled fair value of €382,604 (€2,834/m²), a €22,604 (5.9%) gap versus the €360,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| São Gonçalo de Lagos · 76b06b | Subject | €360,000 | €2,667 | — | 70 | 71 |
| São Gonçalo de Lagos · 1e6013 | Active | €385,000 | €2,070 | 22.4% | 73 | 71 |
| São Gonçalo de Lagos · 25f6a6 | Active | €330,000 | €2,558 | 4.1% | 70 | 73 |
| São Gonçalo de Lagos · 735461 | Active | €319,000 | €2,593 | 2.7% | 72 | 70 |
| rua General Humberto Delgado | Active | €395,000 | €3,160 | 18.5% | 68 | 67 |
| Median comp | €357,500 | €2,576 | 3.4% | 71 | 71 |
Long-term rental The property’s gross yield of 5.3% indicates a reasonable income potential for long-term rentals in the competitive real estate market of Algarve. However, with the property price closely aligning with its fair value, investors should approach with caution, as any unforeseen costs could affect profitability. Short-term vacation rental The location in a popular tourist hotspot suggests that short-term vacation rentals could be lucrative, yet the property is fairly priced at €360,000, just 5.9% below fair value. Maintaining a careful balance between rental income and operational costs will be essential to achieve profitability in this strategy. Buy-and-hold While the property presents a stable investment opportunity with a fair valuation, the potential appreciation may be limited given its current pricing relative to fair value. As a buy-and-hold investment, it could provide steady returns, but investors should be prepared for potential market shifts that could impact long-term growth.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns affecting property value and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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