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 56 m², built in 2003, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This apartment boasts a large rooftop terrace with panoramic views of the sea and Black Rock, enhancing its appeal as a tranquil retreat just minutes from the beach.
The valuation. The asking price of €365,000 far exceeds the fair value of €94,376, resulting in a discrepancy of €270,624 (74.1%). Verdict: overpriced. Buy-to-flip angle. With substantial renovations needed for modern upgrades, a buy-to-flip strategy would involve improving dated features for a potential resale at a higher market value. Buy-to-let angle. A buy-to-let strategy could generate an estimated rental income of €1,095 per month, leading to a gross yield of 3.6%, appealing to long-term tenants and vacation rentals in a tourist area.
Fair value modelled at €94,376 from the area baseline, adjusted for condition and location. Asking €365,000 sits €270,624 (74.1%) above — overpriced versus fair value.
Asking €365,000 versus the Luz, Lagos, Faro area baseline of €216,552 (€3,867/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 70 · Materials 69 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 80 · Economic 68 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €216,552 + condition -€4,813 + location +€8,357 = modelled fair value of €94,376 (€1,685/m²), a €270,624 (74.1%) gap versus the €365,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 65a6ea | Subject | €365,000 | €6,518 | — | 70 | 73 |
| rua Ana Rosa Monteiro, 44 | Active | €242,500 | €4,949 | 24.1% | 68 | 73 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 3.0% | 75 | 70 |
| São Gonçalo de Lagos · 937180 | Active | €652,000 | €5,927 | 9.1% | — | 73 |
| Luz · f35f5f | Active | €465,000 | €5,813 | 10.8% | 72 | 76 |
| Median comp | €400,000 | €5,870 | 9.9% | 72 | 73 |
Short-term vacation rental The property is overpriced by 74.1% compared to its fair value, which diminishes the potential for attractive returns in the short-term vacation rental market. With a gross yield of only 3.6%, the financial outlook becomes less appealing for this strategy. Long-term rental At a listing price of €365,000, the property does not align with the fair value of €94,376, indicating that it is overpriced and decreasing its attractiveness for long-term rental investment. Given the moderate condition rating of 70/100 and neighborhood quality of 73/100, potential long-term rental yields are likely to remain stagnant. Buy-and-hold This property’s significant pricing gap of 74.1% versus fair value suggests that it is overpriced, making it a less viable buy-and-hold strategy despite its location in a tourist-friendly area. Investors may find the return on investment inadequate due to the low gross yield of 3.6% and increasing holding costs associated with such an inflated purchase price.
Potential Tenant Turnover Risk Tenants may be more likely to vacate due to a tenant stability score of 65/100, indicating potential instability in lease renewals and occupancy rates.
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