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, 1-bathroom country_house of 94 m², built in 1951. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a unique slight slope that enhances panoramic views, while allowing for significant reconstruction potential up to 300 m² to tailor your dream home.
The valuation. The asking price of €415,000 is significantly above the fair value of €52,680, indicating the property is overpriced by €362,320 (87.3%). This pricing misalignment suggests potential challenges for prospective buyers seeking value. Buy-to-flip angle. A buy-to-flip strategy may not yield optimal returns given the substantial discrepancy between the asking price and fair value. The potential for resale profit is limited unless significant renovations are undertaken at a lower purchase price. Buy-to-let angle. Despite the overpriced market entry, a buy-to-let strategy focuses on generating rental income, with an estimated gross yield of 5.8% (~€2,006/month). This could appeal to long-term renters or tourists seeking short-term rentals in this attractive Algarve location.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · dee3e1 | Subject | €415,000 | €4,415 | — | — | 67 |
| Luz · ba5a4a | Active | €160,000 | €2,388 | 45.9% | 18 | 72 |
| Luz · 6fbc3f | Active | €550,000 | €3,235 | 26.7% | — | 80 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 8.7% | 52 | 70 |
| rua da Praia | Active | €475,000 | €4,750 | 7.6% | 60 | 70 |
| Median comp | €477,500 | €3,993 | 9.6% | 52 | 71 |
Long-term rental The property is overpriced at €415,000, significantly exceeding the fair value of €52,680, resulting in an 87.3% gap that diminishes its attractiveness for long-term rental investments. With a gross yield of 5.8% and a low condition rating of 0/100, potential profitability appears minimal in the long-term rental market. Short-term vacation rental Despite being located in the Algarve, a prime tourist destination, the property’s price of €415,000 is excessively high compared to its fair value of €52,680, highlighting an 87.3% overvaluation. The condition rating of 0/100 raises concerns regarding guest experience and operational costs, making it a less favorable option for short-term vacation rentals. Buy-and-hold As a buy-and-hold investment, the property is not appealing due to its pricing at €415,000, which is substantially above the fair value of €52,680, showcasing an 87.3% disparity. The combination of low condition and a mediocre neighborhood score of 67/100 suggests that long-term appreciation may not offset the current overpricing of the asset.
Economic Dependence Risk The property is at risk due to a moderate economic stability score of 60/100, which may indicate vulnerability to economic fluctuations affecting tenant retention and rental income.
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