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.
0-bedroom, 1-bathroom studio of 24 m², built in 2005, energy rating C. Located on beco da Hortinha, 7, Luz parish, Lagos municipality, Faro district. Charming studio features a south-facing private patio ideal for outdoor relaxation and is situated just a 3-minute walk from the stunning Praia da Luz.
The valuation. The asking price of €175,000 is significantly above the fair value of €41,220, resulting in a substantial overvaluation of €133,780 (76.4%). This property is therefore categorized as overpriced.
Fair value modelled at €41,220 from the area baseline, adjusted for condition and location. Asking €175,000 sits €133,780 (76.4%) above — overpriced versus fair value.
Asking €175,000 versus the beco da Hortinha, 7 area baseline of €111,744 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
beco da Hortinha, 7
Area baseline €111,744 + condition +€112 + location +€2,180 = modelled fair value of €41,220 (€1,718/m²), a €133,780 (76.4%) gap versus the €175,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco da Hortinha, 7 | Subject | €175,000 | €7,292 | — | 72 | 64 |
| rua Ana Rosa Monteiro, 44 | Active | €242,500 | €4,949 | 32.1% | 68 | 73 |
| Luz · f35d7f | Active | €365,000 | €8,295 | 13.8% | — | 76 |
| Luz · 65a6ea | Active | €365,000 | €6,518 | 10.6% | 70 | 73 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 13.3% | 75 | 70 |
| Median comp | €350,000 | €6,420 | 12.0% | 70 | 73 |
Short-term vacation rental This 0-bed studio in Luz, Lagos, offers no gross yield, indicating it is not a viable option for generating income via short-term vacation rentals. Additionally, the property is overpriced by 76.4% compared to its fair value, making it an unfavorable investment for this strategy. Long-term rental With a fair value of €41,220, the significant pricing disparity raises concerns about the potential return on investment through long-term leasing. The current price of €175,000 indicates that this property is overpriced, which could limit demand in a rental market driven by affordable options. Buy-and-hold Investing in this studio for the buy-and-hold strategy is not advisable given its overpriced status and zero gross yield, which means it is unlikely to appreciate significantly over time. The gap from fair value suggests substantial risk without adequate reward for long-term holding. Not ideal for: Student housing, Luxury market, Value-add renovation Given the overall condition and high price, this property is not suitable for student housing or luxury markets due to its inadequate appeal. Furthermore, potential value-add renovations are unlikely to yield returns that compensate for the current overvaluation, rendering this option unfeasible.
Economic Vulnerability The economic stability score of 55 indicates a higher risk of adverse economic conditions affecting the property's performance, with potential fluctuations in tenant demand.
