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.
1-bedroom, 1-bathroom studio of 37 m², energy rating D. Located on beco do Norte, 2, Luz parish, Lagos municipality, Faro district. Noteworthy Features: This studio includes a private south-facing patio with expansion potential and a communal terrace offering stunning sea views, enhancing both outdoor living and investment appeal.
The valuation. The asking price of €185,000 is significantly above the fair value of €54,623, indicating it is overpriced by €130,377, or 70.5%. This discrepancy suggests a lack of attractive investment potential at the current pricing.
Fair value modelled at €54,623 from the area baseline, adjusted for condition and location. Asking €185,000 sits €130,377 (70.5%) above — overpriced versus fair value.
Asking €185,000 versus the beco do Norte, 2 area baseline of €166,907 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 58/100 (Condition 64 · Materials 55 · Room dimensions 56). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 68/100 (Housing Market 80 · Amenities 60 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
beco do Norte, 2
Area baseline €166,907 + condition -€9,712 + location +€4,321 = modelled fair value of €54,623 (€1,476/m²), a €130,377 (70.5%) gap versus the €185,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco do Norte, 2 | Subject | €185,000 | €5,000 | — | 64 | 68 |
| Luz · f35d7f | Active | €365,000 | €8,295 | 65.9% | — | 76 |
| rua Ana Rosa Monteiro, 44 | Active | €242,500 | €4,949 | 1.0% | 68 | 73 |
| beco da Hortinha, 7 | Active | €175,000 | €7,292 | 45.8% | 72 | 64 |
| Luz · bf2908 | Active | €490,000 | €5,765 | 15.3% | 67 | 74 |
| Median comp | €303,750 | €6,529 | 30.6% | 68 | 74 |
Short-term vacation rental This property is overpriced by 70.5%, impacting its potential profitability in a tourism-driven market where average returns are critical. With a gross yield of 0% and a fair value significantly lower than the asking price, this investment strategy is unlikely to be successful. Buy-and-hold Investing in this studio as a buy-and-hold strategy is questionable, as its current listing price far exceeds its fair value by 70.5%. The combination of a low yield and the property's condition of 58/100 suggests a lack of future appreciation potential. Family rental Acquiring this property for family rental purposes is not advisable considering it is overpriced at €185,000, well above its fair value of €54,623. The neighbourhood score of 68/100 does not compensate for the high entry cost and the lack of yield. Not ideal for: Student housing, Industrial investment, Luxury market The market dynamics and pricing make this property unsuitable for student housing and industrial investment, where returns rely on affordability. In the luxury market, its appreciation potential is overwhelmed by the 70.5% gap from fair value, indicating a significant risk and lack of market competitiveness.
Economic Downturn Risk A combination of a 65/100 economic stability score and a 60/100 tenant stability score indicates a higher risk of decreased rental income and potential vacancies over time due to economic fluctuations.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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