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 112 m², built in 2005, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This apartment offers unparalleled proximity to Praia da Luz beach just steps away, coupled with extensive resort amenities such as a fully equipped gym and multiple swimming pools.
The valuation. The asking price of €520,000 is significantly above the fair value of €208,002, representing a 60.0% premium. This property is clearly overpriced in comparison to market standards.
Fair value modelled at €208,002 from the area baseline, adjusted for condition and location. Asking €520,000 sits €311,998 (60.0%) above — overpriced versus fair value.
Asking €520,000 versus the Luz, Lagos, Faro area baseline of €505,232 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 78 · Materials 82 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 65 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €505,232 + condition +€9,625 + location +€16,713 = modelled fair value of €208,002 (€1,857/m²), a €311,998 (60.0%) gap versus the €520,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 6ebb79 | Subject | €520,000 | €4,643 | — | 78 | 73 |
| Luz · 28b9cd | Active | €435,000 | €2,825 | 39.2% | 75 | 70 |
| São Gonçalo de Lagos · 28b67a | Active | €425,000 | €3,972 | 14.5% | 75 | 72 |
| Luz · f35f5f | Active | €465,000 | €5,813 | 25.2% | 72 | 76 |
| São Gonçalo de Lagos · 6d54ed | Active | €335,000 | €6,321 | 36.1% | 75 | 70 |
| Median comp | €430,000 | €4,893 | 5.4% | 75 | 71 |
Short-term vacation rental Given the property’s high listing price of €520,000 compared to a fair value of €208,002, the potential for short-term vacation rentals appears limited, with a gross yield of merely 4.1%. Additionally, the neighborhood's 73/100 rating indicates some level of tourist activity, but the overall overpriced nature detracts from profitability. Long-term rental While long-term rentals often provide stable income, this apartment's €520,000 listing versus the fair value of €208,002 suggests that the property's price is misaligned with market realities, leading to a gross yield of just 4.1%. The adequate condition rating of 81/100 could attract tenants, but the overall overpriced situation limits the investment's attractiveness. Buy-and-hold Investing in this apartment for a buy-and-hold strategy may not be advantageous, as the property is priced at €520,000 against a fair value of €208,002, revealing a significant 60% gap. The 4.1% gross yield represents a missed opportunity for value appreciation given the current overpriced status of the property.
Tenant turnover risk With a tenant stability score of 75/100, there is a moderate risk of tenant turnover impacting consistent rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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