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.
1-bedroom, 1-bathroom apartment of 85 m², energy rating E. Located Luz parish, Lagos municipality, Faro district. This apartment boasts a private terrace perfect for enjoying sunsets over the ocean, enhancing outdoor living space in an already bright, modern environment.
The valuation. The asking price of €490,000 significantly exceeds the fair value of €142,207, presenting a discrepancy of €347,793 (71.0%). This property is deemed overpriced due to its inflated valuation compared to the market standard. Buy-to-flip angle. A resale strategy may focus on renovations to enhance the apartment's appeal, yet with a gross yield of 0% and current market conditions, realizing a profit on resale is unlikely. Buy-to-let angle. Given the lack of rental income potential with a gross yield of 0%, pursuing a long-term rental strategy would not generate any immediate cash flow or justify the high asking price in this investment scenario.
Fair value modelled at €142,207 from the area baseline, adjusted for condition and location. Asking €490,000 sits €347,793 (71.0%) above — overpriced versus fair value.
Asking €490,000 versus the Luz, Lagos, Faro area baseline of €383,435 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 67 · Materials 74 · Room dimensions 66). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €383,435 + condition -€8,898 + location +€13,236 = modelled fair value of €142,207 (€1,673/m²), a €347,793 (71.0%) gap versus the €490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · bf2908 | Subject | €490,000 | €5,765 | — | 67 | 74 |
| Luz · f35f5f | Active | €465,000 | €5,813 | 0.8% | 72 | 76 |
| rua Ana Rosa Monteiro, 44 | Active | €242,500 | €4,949 | 14.2% | 68 | 73 |
| Luz · 65a6ea | Active | €365,000 | €6,518 | 13.1% | 70 | 73 |
| beco da Hortinha, 7 | Active | €175,000 | €7,292 | 26.5% | 72 | 64 |
| Median comp | €303,750 | €6,166 | 7.0% | 71 | 73 |
Short-term vacation rental The 1-bed apartment in Luz, Lagos, is overpriced at €490,000, significantly exceeding its fair value of €142,207 by 71%. Given the zero gross yield and seasonal tourism fluctuations, this investment strategy is unlikely to yield favorable returns. Long-term rental With the property priced at €490,000 against a fair value of €142,207, investing in a long-term rental is not viable due to the substantial gap of 71%. The lack of gross yield further underscores that this property may not attract quality tenants or provide adequate income over time. Family rental At a listing price of €490,000, well above its fair value of €142,207, the family rental strategy faces challenges due to the 71% price disparity. While the neighborhood has decent amenities and lower crime rates, this property’s pricing makes it less appealing for families seeking value for their housing investment.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of fluctuations in market conditions that could impact 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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