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 house of 87 m², energy rating E. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This property is uniquely positioned with the Fishermen's Trail at its doorstep, providing direct access to breathtaking cliffside walks along the Costa Vicentina.
The valuation. The asking price of €490,000 exceeds the fair value of €146,850 by €343,150 (70.0%), marking this property as overpriced. This significant disparity raises concerns regarding the investment potential and profitability for prospective buyers.
Fair value modelled at €146,850 from the area baseline, adjusted for condition and location. Asking €490,000 sits €343,150 (70.0%) above — overpriced versus fair value.
Asking €490,000 versus the Luz, Lagos, Faro area baseline of €392,457 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 75 · Materials 68 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €392,457 + condition -€6,117 + location +€11,854 = modelled fair value of €146,850 (€1,688/m²), a €343,150 (70.0%) gap versus the €490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 9117dc | Subject | €490,000 | €5,632 | — | 75 | 71 |
| rua da Praia | Active | €475,000 | €4,750 | 15.7% | 60 | 70 |
| Budens · 1e62cc | Active | €475,000 | €4,750 | 15.7% | 66 | 74 |
| Luz · 4a7ed4 | Active | €675,000 | €8,882 | 57.7% | 70 | 67 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 14.8% | 52 | 70 |
| Median comp | €477,500 | €4,775 | 15.2% | 63 | 70 |
Long-term rental The property, priced at €490,000, is significantly overpriced compared to its fair value of €146,850, resulting in a substantial gap of 70.0%. With a low gross yield of 2.2%, this investment would struggle to provide adequate returns in a moderately seasonally affected rental market. Short-term vacation rental At €490,000, this property does not align with its fair value of €146,850, indicating a 70.0% premium that makes it difficult to justify for short-term vacation rentals. While the area is a tourist hotspot, the high price relative to its potential income suggests this investment may be risky and less profitable. Buy-and-hold With a purchase price of €490,000 against a fair value of €146,850, the 70.0% gap reflects an overpriced position for a buy-and-hold strategy. Although the Algarve region has a safe environment and strong international community, the high entry price limits the long-term growth potential of this asset.
Economic Vulnerability The economic stability score of 65 indicates potential economic fluctuations that could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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