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, 2-bathroom apartment of 174 m², energy rating C. Located Luz parish, Lagos municipality, Faro district. The apartment features an exceptional outdoor terrace, ideal for al fresco dining, with both covered and uncovered areas, overlooking lush gardens and offering distant sea views.
The valuation. The asking price of €569,900 sits significantly below the fair value of €788,560, creating a valuation gap of €218,660 (27.7%). This property is underpriced relative to its true market value.
Fair value modelled at €788,560 from 6 comparable sales in the area. Asking €569,900 sits €218,660 (27.7%) below — the upside to fair value.
Asking €569,900 versus the Luz, Lagos, Faro area baseline of €766,379 (€4,404/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €766,379, adjusted for condition and micro-location, gives a modelled fair value of €788,560 (€4,532/m²), a €218,660 (27.7%) gap versus the €569,900 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 831393 | Subject | €569,900 | €3,275 | — | 84 | 75 |
| Luz · 6ebb79 | Active | €520,000 | €4,643 | 41.8% | 78 | 73 |
| rua do Poço, 24E | Active | €995,000 | €7,835 | 139.2% | 80 | 75 |
| São Gonçalo de Lagos · 652f5f | Active | €465,000 | €5,000 | 52.7% | 72 | 71 |
| rua 25 de Abril, 5 | Active | €420,000 | €4,421 | 35.0% | 78 | 63 |
| Median comp | €492,500 | €4,822 | 47.2% | 78 | 72 |
Short-term vacation rental The 2-bed apartment in Luz, Lagos is strategically positioned in Algarve, a prime tourist region, making it an attractive option for short-term vacation rentals throughout the year. Given the gap of 27.7% compared to its fair value of €788,560, this property holds significant potential for appreciation in the context of rising seasonal demand. Buy-and-hold With a fair value of €788,560, this property is poised for growth, making it an appealing buy-and-hold investment for future capital appreciation in a desirable location. The combination of high tenant quality and solid amenities further supports its potential for long-term value increase. Long-term rental While currently yielding 0% gross, the Luz apartment's strong neighborhood rating of 75/100 and overall condition score of 86/100 suggest the capability to attract quality tenants for a long-term rental strategy. Investing in this property provides an opportunity to benefit from steady rental income as market conditions improve, despite its current pricing. Not ideal for This property is not suitable for student housing, industrial space, or agricultural ventures given the demographic characteristics and urban nature of the location.
Potential downturn risk The economic stability score of 70/100 indicates a medium risk of economic downturn affecting rental income stability, compounded by a tenant stability score of 75/100 which suggests some vulnerability in tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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