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, 2-bathroom apartment of 80 m², built in 2002, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes a generous private terrace with pool and sea views, enhancing outdoor living, while its strategic location offers quick access to local amenities and the beach.
The valuation. The asking price of €465,000 is significantly above the fair value of €143,630, representing a premium of €321,370 (69.1%). This property is overpriced relative to its intrinsic worth.
Fair value modelled at €143,630 from the area baseline, adjusted for condition and location. Asking €465,000 sits €321,370 (69.1%) above — overpriced versus fair value.
Asking €465,000 versus the Luz, Lagos, Faro area baseline of €372,480 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €372,480 + condition +€375 + location +€13,495 = modelled fair value of €143,630 (€1,795/m²), a €321,370 (69.1%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · f35f5f | Subject | €465,000 | €5,813 | — | 72 | 76 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 8.7% | 75 | 70 |
| São Gonçalo de Lagos · 937180 | Active | €652,000 | €5,927 | 2.0% | — | 73 |
| Luz · 65a6ea | Active | €365,000 | €6,518 | 12.1% | 70 | 73 |
| Luz · bf2908 | Active | €490,000 | €5,765 | 0.8% | 67 | 74 |
| Median comp | €427,500 | €6,124 | 5.4% | 70 | 73 |
Short-term vacation rental This 2-bed apartment in Luz, Lagos is overpriced based on a fair value estimate of €143,630, resulting in a 69.1% gap from the listing price of €465,000. With a gross yield of only 3% and varying tourist demand, the potential returns from a short-term rental strategy are unlikely to justify such a high purchase price. Buy-and-hold Investing in this property as a buy-and-hold is not advisable due to its current listing price significantly exceeding fair value, with a gap of 69.1%. The low gross yield of 3% indicates limited long-term appreciation potential, making it a less attractive investment for long-term holding. Long-term rental Acquiring this apartment for long-term rental is a suboptimal strategy given its overpriced nature at €465,000 compared to a fair value of €143,630, presenting a significant gap of 69.1%. The gross yield of 3% suggests that rental income would barely cover the investment costs, casting doubt on the overall sustainability of this approach.
Economic Vulnerability The property's economic stability score of 75/100 indicates a moderate risk due to potential fluctuations in local market conditions that could impact rental income. Tenant Turnover Risk With a tenant stability score of 70/100, there is a significant chance of increased turnover, which could lead to periods of vacancy and additional costs for re-letting the property.
