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 110 m², built in 2003. Located Luz parish, Lagos municipality, Faro district. This apartment boasts a dedicated parking space in a secure basement garage and a private storage room, enhancing convenience for residents and guests.
The valuation. The asking price of €465,000 sits above the fair value of €436,916 by €28,084 (6.4%). This property is positioned at a fair market price, reflecting its quality and location. Buy-to-flip angle. The resale strategy focuses on capitalizing on the property’s attractive features, modern finishes, and prime tourist location, targeting a quick turnover at a competitive market price. Buy-to-let angle. The rental income strategy anticipates a gross yield of 4.2% with estimated monthly income of €1,628, leveraging the high demand for rentals in the Algarve’s tourist-driven market.
Fair value modelled at €436,916 from 5 comparable sales in the area. Asking €465,000 sits €28,084 (6.4%) above — overpriced versus fair value.
Asking €465,000 versus the Luz, Lagos, Faro area baseline of €427,935 (€3,890/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 €427,935, adjusted for condition and micro-location, gives a modelled fair value of €436,916 (€3,972/m²), a €28,084 (6.4%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · a8039f | Subject | €465,000 | €4,227 | — | 73 | 68 |
| São Gonçalo de Lagos · 652f5f | Active | €465,000 | €5,000 | 18.3% | 72 | 71 |
| Luz · 6ebb79 | Active | €520,000 | €4,643 | 9.8% | 78 | 73 |
| beco José Ribeiro Lopes | Active | €569,900 | €3,275 | 22.5% | 85 | 68 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 22.9% | 70 | 72 |
| Median comp | €492,500 | €3,959 | 6.3% | 75 | 72 |
Long-term rental The property presents a fair rental yield of 4.2%, indicative of a stable income potential in the current market. However, the relatively low amenities for permanent residents in the area suggests limited tenant demand for long-term rentals. Short-term vacation rental Given the high tourist-driven demand in the Algarve, this property could see decent occupancy rates as a short-term vacation rental. Despite its fair pricing, the condition and neighborhood ratings imply challenges in achieving premium nightly rates. Buy-and-hold Holding this property could provide consistent, albeit modest, returns given the fair value and local economic context. However, the asset's appreciation potential may be compromised due to lower permanent resident amenities and the overall condition rating of 74/100, suggesting maintenance costs may impact long-term investment growth.
Economic and Tenant Instability The property has an economic stability score of 65 and a tenant stability score of 65, indicating potential challenges in attracting and retaining tenants, which could impact rental income and overall investment performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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