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, 3-bathroom apartment of 147 m², built in 2009, energy rating C. Located on urbanização dos Aromas, Luz parish, Lagos municipality, Faro district. Noteworthy Features: Five private balconies provide ample sun exposure and serene countryside views, while a versatile mezzanine offers additional living space for guests or leisure activities.
The valuation. The asking price of €435,000 sits €173,462 above the fair value of €261,538, marking the property as overpriced by 39.9%. This disparity raises concerns about potential return on investment. Buy-to-flip angle. A buy-to-flip strategy would require strategic renovations to enhance the appeal of this apartment, targeting a resale price above €435,000 to recovery investment costs. However, due to its overpriced status, potential profits may be limited. Buy-to-let angle. For a buy-to-let strategy, the current gross yield stands at 0% with an estimated negative cash flow, suggesting that this property may not be financially viable for long-term rental income under the current asking price.
Fair value modelled at €261,538 from the area baseline, adjusted for condition and location. Asking €435,000 sits €173,462 (39.9%) above — overpriced versus fair value.
Asking €435,000 versus the urbanização dos Aromas area baseline of €684,432 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
urbanização dos Aromas
Area baseline €684,432 + condition +€6,891 + location +€16,214 = modelled fair value of €261,538 (€1,779/m²), a €173,462 (39.9%) gap versus the €435,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização dos Aromas | Subject | €435,000 | €2,959 | — | 75 | 67 |
| rua do Vale da Zorra | Active | €430,000 | €2,389 | 19.3% | 70 | 78 |
| Luz · bf2908 | Active | €490,000 | €5,765 | 94.8% | 67 | 74 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 44.8% | 80 | 66 |
| Luz · 82c6f6 | Active | €825,000 | €4,508 | 52.3% | 76 | 66 |
| Median comp | €470,000 | €4,397 | 48.6% | 73 | 70 |
Short-term vacation rental This property, with a listing price of €435,000, represents a significant gap of 39.9% from its fair value of €261,538, indicating it is overpriced for the short-term rental market. The yield of 0% gross suggests that potential returns are unlikely to justify the high purchase price despite the Algarve's tourist appeal. Long-term rental The 2-bed apartment's current price of €435,000 far exceeds its fair value of €261,538, making it an overpriced option for long-term rental strategies. Given that the yield is 0% gross, this property does not present an attractive investment for generating steady rental income over time. Buy-and-hold With a fair value of €261,538 versus a listing price of €435,000, this 2-bed apartment is clearly overpriced for a buy-and-hold investment strategy. However, the property’s decent condition (78/100) and low crime in the neighbourhood may not compensate for the price premium in a market where high demand does not necessarily equate to high yield.
Economic and Tenant Instability The combined scores of 60/100 for economic stability and tenant stability indicate potential variability in income and occupancy rates, raising concerns about consistent cash flow.
