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, 2-bathroom apartment of 96 m² on the 6th floor, built in 1983, energy rating C. Located on rua Joaquim Teixeira S / N, Luz parish, Lagos municipality, Faro district. Noteworthy Features: This apartment offers a unique blend of sea views and excellent sunlight exposure, complemented by its proximity to essential amenities and the beach within walking distance.
The valuation. The asking price of €402,000 is only €3,818 (0.9%) below the fair value of €405,818, indicating that this property is fairly priced within the current market context. Buy-to-flip angle. By making some cosmetic updates to the dated flooring and furnishings, the property could be flipped for a profit, catering to buyers looking for updated features in a desirable vacation area. Buy-to-let angle. With an estimated gross yield of 5.3% and potential rental income of €1,776 per month, this property is well-positioned for stable long-term rental returns in a location popular with tourists.
Fair value modelled at €405,818 from 6 comparable sales in the area. Asking €402,000 sits €3,818 (0.9%) below — the upside to fair value.
Asking €402,000 versus the rua Joaquim Teixeira S / N area baseline of €400,319 (€4,170/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 €400,319, adjusted for condition and micro-location, gives a modelled fair value of €405,818 (€4,227/m²), a €3,818 (0.9%) gap versus the €402,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Joaquim Teixeira S / N | Subject | €402,000 | €4,188 | — | 65 | 70 |
| Luz · 5ed0a7 | Active | €520,000 | €3,190 | 23.8% | — | 75 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 22.2% | 70 | 72 |
| Luz · 8ee953 | Active | €495,000 | €6,600 | 57.6% | 66 | 72 |
| Luz · a8039f | Active | €465,000 | €4,227 | 0.9% | 73 | 68 |
| Median comp | €480,000 | €3,743 | 10.6% | 70 | 72 |
Short-term vacation rental While the gross yield of 5.3% presents a reasonable return for a short-term vacation rental, the property's pricing at €402,000 aligns closely with its fair value of €405,818, suggesting limited upside. Given its decent condition score of 68/100, it is important to assess the competitive landscape more closely before committing to this strategy in a vibrant tourist market like Algarve. Buy-and-hold With a fair value gap of only 0.9%, investing in this apartment as a buy-and-hold strategy appears to yield minimal potential for appreciation relative to market dynamics. The neighborhood scores of 70/100 indicate a respectable quality of living, but investors should carefully weigh long-term growth prospects given the property's fair pricing. Long-term rental The 5.3% gross yield from long-term rentals can provide stable income, but the property's price being nearly at fair value suggests limited room for value appreciation. Additionally, the condition and neighborhood scores are adequate, indicating that while it may perform reliably, significant capital gains may not materialize in the near future.
Economic Vulnerability The economic stability score of 60/100 suggests potential vulnerabilities in market conditions that could affect the property’s long-term profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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