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 apartment of 80 m² on the 2nd floor, built in 2001, energy rating D. Located on beco da Hortinha, Luz parish, Lagos municipality, Faro district. This apartment features a 16m² terrace that offers stunning sea views, and its location provides easy access to local commerce just 500 meters from Praia da Luz.
The valuation. The asking price of €450,000 is significantly above the fair value of €136,141, reflecting an overvaluation of €313,859 (69.7%). This price suggests a lack of alignment with market conditions, indicating it is overpriced.
Fair value modelled at €136,141 from the area baseline, adjusted for condition and location. Asking €450,000 sits €313,859 (69.7%) above — overpriced versus fair value.
Asking €450,000 versus the beco da Hortinha area baseline of €360,880 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 72 · Materials 70 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 80 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
beco da Hortinha
Area baseline €360,880 + condition -€4,000 + location +€10,381 = modelled fair value of €136,141 (€1,702/m²), a €313,859 (69.7%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco da Hortinha | Subject | €450,000 | €5,625 | — | 72 | 70 |
| beco do Norte, 2 | Active | €185,000 | €5,000 | 11.1% | 64 | 68 |
| beco da Hortinha, 7 | Active | €175,000 | €7,292 | 29.6% | 72 | 64 |
| Luz · f35d7f | Active | €365,000 | €8,295 | 47.5% | — | 76 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 42.1% | 70 | 72 |
| Median comp | €275,000 | €6,146 | 9.3% | 70 | 70 |
Short-term vacation rental Given the property's listing price of €450,000, which is 69.7% above its fair value of €136,141, the return on investment is severely compromised despite a gross yield of only 3%. Additionally, the seasonal stability concerns in the neighbourhood, influenced by fluctuating tourism, further diminish the attractiveness of this strategy. Long-term rental This property is not a prudent choice for long-term rental given its considerable overvaluation at €450,000 compared to a fair value of €136,141, resulting in minimal potential for consistent cash flow with a mere 3% yield. The neighbourhood's condition rating of 70/100 suggests only moderate demand, which could lead to challenges in securing reliable tenants. Buy-and-hold Investing in this property as a long-term buy-and-hold is unwise, considering its significant overpricing discrepancy of 69.7% above fair value, leading to an unattractive 3% gross yield. Furthermore, the neighbourhood's economic stability is questionable, which raises concerns about future appreciation and return on investment.
[Economic Volatility] With an economic stability score of 60/100, there is a risk of fluctuations in local market conditions that may affect property value and 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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