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 house of 156 m², built in 2006, energy rating B. Located on rua Nelson Mandela, 6, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property offers access to a large community pool with ocean views and includes a versatile office space that can easily be converted into a third bedroom.
The valuation. The asking price of €888,000 is significantly above the fair value of €88,438, representing an overpriced situation by €799,562 or 90.0%. This property does not offer a compelling financial opportunity for investment.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Nelson Mandela, 6 | Subject | €888,000 | €5,692 | — | — | 68 |
| rua da Calheta | Active | €1,750,000 | €7,114 | 25.0% | — | 80 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 71.7% | 80 | 72 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 25.0% | 80 | 70 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 46.2% | 75 | 65 |
| Median comp | €1,750,000 | €7,114 | 25.0% | 80 | 71 |
Short-term vacation rental The property is overpriced at €888,000, significantly exceeding its fair value of €88,438, creating a 90% gap that diminishes profitability for this strategy. Even within a tourist-friendly area, a gross yield of 1.9% indicates limited potential for short-term rental returns. Buy-and-hold This 2-bed house in Luz, Lagos, priced at €888,000, is not a viable buy-and-hold investment as it is overpriced with a staggering 90% gap from its fair value of €88,438. The low yield of 1.9% suggests that long-term capital appreciation will be inadequate to justify such a premium price. Family rental Priced at €888,000, this property is overpriced compared to its fair value of €88,438, indicating that it may not attract tenants seeking affordable family homes. Furthermore, the low yield of 1.9% paired with a condition rating of 0/100 raises concerns about ongoing maintenance costs in relation to tenant demand.
Economic Vulnerability The economic stability score of 55 indicates a moderate risk that economic downturns could negatively impact rental income and property value.
