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 apartment of 75 m². Located Luz parish, Lagos municipality, Faro district. This apartment features a sunny balcony with superb panoramic sea views and a master bedroom with private access to a second balcony, enhancing the outdoor living experience.
The valuation. The asking price of €495,000 sits €121,913 (32.7%) above the fair value of €373,087, indicating that the property is overpriced. Buy-to-flip angle. A wholesale strategy could leverage the apartment's location, potentially targeting a quick resale to investors or buyers looking for vacation properties. Buy-to-let angle. With a gross yield of 2.8%, the estimated rental income of €1,155 per month may appeal to long-term tenants, especially given the area's tourist attraction appeal.
Fair value modelled at €373,087 from 6 comparable sales in the area. Asking €495,000 sits €121,913 (32.7%) above — overpriced versus fair value.
Asking €495,000 versus the Luz, Lagos, Faro area baseline of €356,243 (€4,750/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €356,243, adjusted for condition and micro-location, gives a modelled fair value of €373,087 (€4,974/m²), a €121,913 (32.7%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 8ee953 | Subject | €495,000 | €6,600 | — | 66 | 72 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 50.6% | 70 | 72 |
| beco do Norte, 2 | Active | €185,000 | €5,000 | 24.2% | 64 | 68 |
| rua Ana Rosa Monteiro, 44 | Active | €242,500 | €4,949 | 25.0% | 68 | 73 |
| beco da Hortinha | Active | €450,000 | €5,625 | 14.8% | 72 | 70 |
| Median comp | €336,250 | €4,975 | 24.6% | 69 | 71 |
Short-term vacation rental The current listing price of €495,000 exceeds the fair value by 32.7%, suggesting that the potential return on investment may be limited despite the neighborhood's advantageous proximity to tourist attractions. With a gross yield of only 2.8%, the profitability of pursuing a short-term vacation rental strategy appears compromised given the high entry cost. Buy-and-hold Investing in a buy-and-hold strategy for this property, priced at €495,000, is not optimal since it is significantly above the fair value of €373,087, indicating the investment may not appreciate as expected. Additionally, the modest 2.8% yield reflects the risks associated with holding an overpriced asset over time. Family rental Although family rentals generally benefit from good neighborhood conditions, this property’s listing price of €495,000 results in a substantial gap from its fair value, thereby affecting potential rental income and cash flow. With low yields at 2.8%, this investment lacks the attractiveness required for a family rental in the current market conditions.
Economic Vulnerability With an economic stability score of 65/100, there is a notable risk that economic downturns could negatively impact 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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