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, 3-bathroom house of 164 m², built in 2003, energy rating C. Located on beco Eugénio de Andrade, Luz parish, Lagos municipality, Faro district. This property features dual terraces with outdoor dining options and a private pool area, enhancing leisure and entertaining opportunities in a prime location near the beach.
The valuation. The asking price of €625,000 sits below the fair value of €832,338, representing a difference of €207,338 (24.9%). This property is clearly underpriced, presenting a unique purchasing opportunity. Buy-to-flip angle. The strategy for resale involves capitalizing on the attractive location in the Algarve, targeting vacation home buyers looking for properties in tourist hotspots. With renovations, this home could easily appeal to buyers for a significant profit margin. Buy-to-let angle. A rental income strategy aims for short-term vacation rentals, generating an estimated monthly income of €2,917. With a gross yield of 5.6%, the property promises a healthy return on investment aligned with the active tourist season in the area.
Fair value modelled at €832,338 from 6 comparable sales in the area. Asking €625,000 sits €207,338 (24.9%) below — the upside to fair value.
Asking €625,000 versus the beco Eugénio de Andrade area baseline of €818,913 (€4,993/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 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 €818,913, adjusted for condition and micro-location, gives a modelled fair value of €832,338 (€5,075/m²), a €207,338 (24.9%) gap versus the €625,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco Eugénio de Andrade | Subject | €625,000 | €3,811 | — | 70 | 72 |
| Luz · 62276e | Active | €948,000 | €5,677 | 49.0% | 83 | 73 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 14.6% | 75 | 72 |
| rua David Mourão Ferreira | Active | €590,000 | €5,463 | 43.3% | 80 | 73 |
| Luz · 622666 | Active | €850,000 | €4,474 | 17.4% | 79 | 74 |
| Median comp | €872,500 | €4,969 | 30.4% | 80 | 73 |
Short-term vacation rental The property’s proximity to the tourist-rich Algarve region makes it an ideal candidate for a short-term vacation rental, capitalizing on the 5.6% gross yield. Given its fair value of €832,338, this property presents an attractive opportunity, clearly highlighted by the 24.9% gap, signaling significant upside potential. Buy-and-hold This three-bedroom house holds promise for a buy-and-hold strategy, with a gross yield of 5.6% complementing its status as a desirable asset in a family-friendly area. The property’s fair value indicates a 24.9% discrepancy from the listing price, reinforcing its position as a solid long-term investment. Family rental With a tenant-friendly rating of 72/100, this property is well-suited for family rental, appealing to the steady demand from expatriates and locals in the Algarve region. The combination of a 5.6% gross yield and the substantial 24.9% gap to fair value supports its attractiveness in the family rental market.
Tenant turnover risk With a tenant stability score of 70/100, there is a moderate risk of tenant turnover, potentially leading to increased vacancy periods and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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