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 82 m² on the 1st floor, built in 1963, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property offers a storage room at the entrance, adding convenience, and is sold partially furnished to facilitate immediate occupation. Proximity to Amenities: Just a short stroll from essential shops and services, enhancing daily living.**
The valuation. The asking price of €348,000 is significantly lower than the fair value of €420,982, presenting an opportunity. This reflects a difference of €72,982, which is approximately 17.3% underpriced.
Fair value modelled at €420,982 from 6 comparable sales in the area. Asking €348,000 sits €72,982 (17.3%) below — the upside to fair value.
Asking €348,000 versus the Luz, Lagos, Faro area baseline of €413,144 (€5,038/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 is above the parish average, lifting 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 €413,144, adjusted for condition and micro-location, gives a modelled fair value of €420,982 (€5,134/m²), a €72,982 (17.3%) gap versus the €348,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · efdd91 | Subject | €348,000 | €4,244 | — | 75 | 63 |
| Luz · 8ee953 | Active | €495,000 | €6,600 | 55.5% | 66 | 72 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 23.2% | 70 | 72 |
| rua do Poço, 24E | Active | €995,000 | €7,835 | 84.6% | 80 | 75 |
| beco da Hortinha | Active | €450,000 | €5,625 | 32.5% | 72 | 70 |
| Median comp | €472,500 | €6,113 | 44.0% | 71 | 72 |
Short-term vacation rental The property is well positioned in the tourist-friendly Algarve region, making it an attractive option for short-term vacation rentals. With a fair value gap of 17.3%, there exists potential for strong rental income against the listing price of €348,000, translating to a gross yield of 4.9%. Buy-and-hold Investing in this 2-bed apartment offers a solid long-term strategy given its subvalued price relative to fair market metrics, indicating robust potential for capital appreciation over time. The combination of favorable tourist demand and a manageable condition rating of 77/100 supports its viability as a reliable buy-and-hold investment. Family rental Given the apartment's size and location, it is well-suited for family rentals, particularly in the context of the tourist-driven demand in the area. The listing price of €348,000, juxtaposed with a fair value of €420,982, reinforces the investment's attractiveness to families seeking quality living options in a desirable neighborhood. Not ideal for: Student housing, Luxury market, Industrial investment This property is not appropriate for student housing, as the demand in tourist-heavy regions differs, and it does not cater to the luxury market, which necessitates higher-end features. Additionally, pursuing industrial investment would be ill-suited given the residential focus of the surrounding area.
Economic Vulnerability The property has an economic stability score of 55/100, indicating a significant risk of market fluctuations impacting tenant occupancy and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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