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 87 m², built in 2000, energy rating E. Located Luz parish, Lagos municipality, Faro district. This apartment features a newly equipped kitchen and a 15.6m² terrace that provides breathtaking panoramic sea views, perfect for enjoying outdoor meals and sunsets.
The valuation. The asking price of €495,000 is significantly above the fair value of €51,014, marking an overpricing of €443,986 (89.7%). This property does not present a sound investment opportunity given its inflated price point. Buy-to-flip angle. The resale strategy would involve aggressive renovation and marketing to capitalize on market demand, but given the current valuation, the upside is limited and risky. Immediate profits may be hard to achieve with such a high initial investment. Buy-to-let angle. With an estimated gross yield of 2.1% (~€866/month), the income potential from long-term rentals appears underwhelming. The area's tourist appeal could support short-term rentals, but profitability remains questionable at the asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · be9355 | Subject | €495,000 | €5,690 | — | — | 71 |
| beco do Norte, 2 | Active | €185,000 | €5,000 | 12.1% | 64 | 68 |
| Luz · bf2908 | Active | €490,000 | €5,765 | 1.3% | 67 | 74 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 42.7% | 70 | 72 |
| Luz · f35d7f | Active | €365,000 | €8,295 | 45.8% | — | 76 |
| Median comp | €397,500 | €5,383 | 5.4% | 67 | 73 |
Short-term vacation rental The current listing price of €495,000 significantly exceeds the fair value of €51,014, indicating the property is overpriced for a short-term vacation rental strategy. With a low gross yield of 2.1% and high market competition in the Algarve, this investment is not likely to provide a satisfactory return. Buy-and-hold Given the fair value gap of 89.7%, purchasing this property for a buy-and-hold strategy would not be prudent as it is overpriced at €495,000. The 2.1% yield suggests that long-term returns in this scenario would be disappointing, particularly in a fluctuating housing market. Value-add renovation While potential renovations could improve the condition from a score of 0/100, the significant overpricing at €495,000 compared to the fair value of €51,014 undermines the viability of a value-add renovation strategy. It is unlikely that returns from renovations would bridge the 89.7% gap to fair value and justify the initial investment cost.
Economic Vulnerability The property is at risk due to its economic stability score of 65, which indicates potential fluctuations in local market conditions affecting revenue predictability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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