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 124 m², built in 2003, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This apartment includes two private terraces with panoramic sea views and a generous 35.4m² private garage, enhancing both outdoor enjoyment and storage capacity.
The valuation. The asking price of €495,000 is situated below the fair value of €524,182, representing a fair position within the market, showing a slight discount of €29,182 (5.6%). Buy-to-flip angle. With targeted renovations and market conditions, this property can be resold swiftly, potentially creating significant returns by leveraging its location in the tourist-heavy Algarve region. Buy-to-let angle. The property can be positioned for short-term vacation rentals at an estimated gross yield of 3.8%, generating around €1,568 monthly, capitalizing on its appeal to tourists in a high-demand area.
Fair value modelled at €524,182 from 6 comparable sales in the area. Asking €495,000 sits €29,182 (5.6%) below — the upside to fair value.
Asking €495,000 versus the Luz, Lagos, Faro area baseline of €514,842 (€4,152/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €514,842, adjusted for condition and micro-location, gives a modelled fair value of €524,182 (€4,227/m²), a €29,182 (5.6%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 1626de | Subject | €495,000 | €3,992 | — | 70 | 72 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 18.4% | 70 | 72 |
| Luz · a8039f | Active | €465,000 | €4,227 | 5.9% | 73 | 68 |
| Luz · a8058b | Active | €465,000 | €4,227 | 5.9% | 72 | 65 |
| Luz · a80abc | Active | €465,000 | €4,227 | 5.9% | 72 | 73 |
| Median comp | €465,000 | €4,227 | 5.9% | 72 | 70 |
Short-term vacation rental The property, located in a sought-after area of the Algarve coast, is positioned well for vacation rentals, benefiting from the tourist-driven economy. However, with a current yield of 3.8% and a fair value assessment showing only a slight gap of 5.6%, the investment appeal is limited due to its fair valuation. Buy-and-hold As a buy-and-hold investment, this 2-bed apartment in Luz, Lagos offers reasonable potential for long-term appreciation and stability, given its location and decent condition rating of 73/100. Nonetheless, the 5.6% gap against fair value indicates that while it may not be a bargain, it is an acceptable choice for an investment holding. Family rental With a neighborhood score of 72/100 and decent amenities, this apartment is suitable for family rentals, appealing to locals and residents. However, given the fair value of €524,182 versus the listing price of €495,000, the property stands as a sensible option without being a particularly advantageous investment. Not ideal for: Student housing, Luxury market Targeting student housing or the luxury market would likely yield less favorable results due to the apartment's fair value and neighborhood dynamics. This property does not cater to the demands typical of these segments, pointing toward a more stable yet conservative rental strategy instead.
Market Vulnerability There is a risk of reduced rental income due to an economic stability score of 68/100, which indicates potential economic fluctuations that could impact tenant demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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