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.
3-bedroom, 2-bathroom house of 170 m², energy rating F. Located Luz parish, Lagos municipality, Faro district. FEATURES The property includes a fully constructed basement offering significant potential for conversion into additional living space such as a suite or leisure area, enhancing overall value.
The valuation. The asking price of €550,000 sits significantly below the fair value of €773,563, indicating an undervaluation of €223,563 (28.9%). This presents a compelling investment opportunity. Buy-to-flip angle. The strategy focuses on short-term renovations to enhance the property’s appeal before a quick resale to capitalize on the current market dynamics. Buy-to-let angle. With an estimated gross yield of 5.5% (~€2,521/month), the property is well-positioned for a successful long-term rental strategy, benefiting from its location in a high-demand tourist area.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 46823a | Subject | €550,000 | €3,235 | — | — | 71 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 48.4% | 52 | 70 |
| Luz · 9117dc | Active | €490,000 | €5,632 | 74.1% | 75 | 71 |
| rua do Lavrador, 2 | Active | €1,100,000 | €4,681 | 44.7% | — | 75 |
| Luz · 6c7874 | Active | €495,000 | €3,037 | 6.1% | 74 | 76 |
| Median comp | €492,500 | €4,741 | 46.5% | 74 | 73 |
Short-term vacation rental This property is categorized as underpriced based on its fair market value of €773,563, making it an attractive option for short-term vacation rentals in the tourist-favored region of Luz, Lagos. With a gross yield of 5.5%, investors can benefit significantly from the seasonal demand driven by tourism. Long-term rental Given the underpriced status of the property, it presents a strong opportunity for long-term rental in a neighborhood with a rating of 71/100, indicating reasonable tenant quality and amenities. The potential for consistent rental income aligns well with the property’s attractive valuation and the local housing market dynamics. Buy-and-hold The property’s fair value suggests a solid investment for a buy-and-hold strategy, particularly as it is located in a growing tourist area where demand may appreciate over time. The underpriced nature of this asset provides a buffer against market fluctuations while securing a competitive yield of 5.5% over the long term.
Economic Sensitivity The property is at risk due to a moderate economic stability score of 65/100, indicating vulnerability to economic downturns that could impact 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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