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, 1-bathroom house of 102 m², built in 2006. Located Luz parish, Lagos municipality, Faro district. Unique Feature: The private roof terrace provides an elevated space perfect for sunbathing, while the fully fitted separate kitchen includes an adjoining pantry for added convenience and storage. Local Amenities: Enjoy easy access to local cafés, restaurants, and beautiful Praia da Luz, enhancing the desirable Algarve lifestyle.
The valuation. The asking price of €430,000 is significantly below the fair value of €580,246, creating an opportunity as it is underpriced by €150,246 (25.9%). This presents a rare find in the current market.
Fair value modelled at €580,246 from 6 comparable sales in the area. Asking €430,000 sits €150,246 (25.9%) below — the upside to fair value.
Asking €430,000 versus the Luz, Lagos, Faro area baseline of €550,680 (€5,399/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €550,680, adjusted for condition and micro-location, gives a modelled fair value of €580,246 (€5,689/m²), a €150,246 (25.9%) gap versus the €430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 46814a | Subject | €430,000 | €4,216 | — | 75 | 73 |
| Luz · 483a5f | Active | €455,000 | €4,333 | 2.8% | 80 | 71 |
| Luz · 4a7ed4 | Active | €675,000 | €8,882 | 110.7% | 70 | 67 |
| Luz · 911743 | Active | €550,000 | €5,851 | 38.8% | 68 | 71 |
| Luz · 6c7874 | Active | €495,000 | €3,037 | 28.0% | 74 | 76 |
| Median comp | €522,500 | €5,092 | 20.8% | 72 | 71 |
Short-term vacation rental The property is well-positioned within the Algarve region, which maintains a consistent tourist appeal, ensuring substantial demand for short-term vacation rentals. With a 3.3% gross yield and a fair value gap of 25.9%, this investment offers potential for strong returns in a thriving market. Long-term rental The property’s condition rating of 73/100 indicates favorable living standards for prospective tenants, supported by a solid neighborhood rating of 73/100. Given the property is currently subvalued at €430,000 compared to its fair value of €580,246, it represents a prudent choice for long-term rental investment, enhancing cash flow potential. Buy-and-hold Investing in this property allows for steady appreciation in a popular locale, with its fair value suggesting significant equity growth over time. The 25.9% disparity between listing and fair value positions this property as a strategically sound addition to a buy-and-hold portfolio in a resilient market. Not ideal for student housing The lack of substantial educational infrastructure within the region makes this property unsuitable for student housing investments. Thus, targeting the vacation or long-term rental markets is likely to yield better returns despite the current listing price. Not ideal for industrial investment Given Luz's limited industrial infrastructure, pursuing industrial investments in this area would not align with market demands. Investors should seek opportunities in more economically diverse locations, avoiding the risks associated with this property type. Not ideal for luxury market The property does not cater to the luxury market segment, as it lacks the high-end amenities typically expected by affluent buyers. Therefore, options in this sector may not yield the desired returns, emphasizing the importance of targeting more accessible rental strategies.
Tenant turnover risk The tenant stability score of 70/100 suggests a moderate risk of potential turnover, which may impact rental income stability.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
