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 country_estate of 152 m², built in 2007, energy rating B. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a versatile dining room that can be easily converted into a third bedroom and a large rooftop terrace, enhancing outdoor living options.
The valuation. The asking price of €530,000 is significantly above the fair value of €261,993, representing an inflated premium of 50.6%. Thus, this property is considered overpriced. Buy-to-flip angle. A resale strategy would target renovations to enhance appeal, capitalizing on its high-end finishes and inviting atmosphere to attract buyers at a competitive price. Buy-to-let angle. Implementing a long-term rental strategy could yield a gross monthly income of approximately €1,546, providing a 3.5% yield, which is modest in a tourism-driven market like Algarve.
Fair value modelled at €261,993 from the area baseline, adjusted for condition and location. Asking €530,000 sits €268,007 (50.6%) above — overpriced versus fair value.
Asking €530,000 versus the Luz, Lagos, Faro area baseline of €707,712 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 70 · Materials 78 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €707,712 + condition -€4,275 + location +€19,724 = modelled fair value of €261,993 (€1,724/m²), a €268,007 (50.6%) gap versus the €530,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 261e65 | Subject | €530,000 | €3,487 | — | 70 | 70 |
| via Pública | Active | €530,000 | €3,557 | 2.0% | 77 | 63 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 22.9% | 80 | 66 |
| rua do Vale da Zorra | Active | €430,000 | €2,389 | 31.5% | 70 | 78 |
| Luz · f36036 | Active | €599,000 | €4,103 | 17.7% | 72 | 75 |
| Median comp | €490,000 | €3,830 | 9.8% | 75 | 71 |
Short-term vacation rental Given the current listing price of €530,000, this property is overpriced by 50.6% compared to its fair value of €261,993, which limits the potential for profitability in a vacation rental strategy. The gross yield of 3.5% falls short of appealing returns, suggesting that alternative investment options are more attractive in the high-demand Algarve market. Long-term rental At €530,000, this property is significantly overpriced, creating a challenging environment for long-term rental profitability, given the fair value assessment of €261,993. The current gross yield of 3.5% is below market standards, indicating insufficient rental income relative to the invested capital. Buy-and-hold Investing in this property for a buy-and-hold strategy is hindered by its overpriced status, as it is valued 50.6% higher than its fair market price of €261,993. The property's yield of 3.5% does not justify the high purchase price, making it less appealing as a long-term investment in a relatively stable but competitive market.
Economic Volatility Risk The economic stability score of 65/100 suggests potential fluctuations in the local economy that could impact rental income.
