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 188 m² on the 2nd floor, built in 2003, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The top-floor position grants unobstructed ocean views, while the private and lockable garage offers secure parking for two cars, enhancing convenience and property value.
The valuation. The asking price of €495,000 sits significantly below the fair value of €794,727, representing a discount of €299,727 or 37.7%. This indicates a compelling opportunity for savvy investors. Buy-to-flip angle. The buy-to-flip strategy could capitalize on the property’s underpricing, potentially allowing for a quick resale after minor cosmetic upgrades to enhance market appeal. Short-term renovations may yield a profitable return. Buy-to-let angle. Additionally, with its prime location in the Algarve tourist region, the property can be targeted for lucrative short-term vacation rentals or long-term rentals, ensuring a steady stream of income for the investor.
Fair value modelled at €794,727 from 6 comparable sales in the area. Asking €495,000 sits €299,727 (37.7%) below — the upside to fair value.
Asking €495,000 versus the Luz, Lagos, Faro area baseline of €780,062 (€4,149/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 €780,062, adjusted for condition and micro-location, gives a modelled fair value of €794,727 (€4,227/m²), a €299,727 (37.7%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 3a720e | Subject | €495,000 | €2,633 | — | 75 | 62 |
| Luz · 1626de | Active | €495,000 | €3,992 | 51.6% | 70 | 72 |
| rua Hermano M. Seromenho | Active | €430,000 | €3,258 | 23.7% | 70 | 72 |
| São Gonçalo de Lagos · 652f5f | Active | €465,000 | €5,000 | 89.9% | 72 | 71 |
| Luz · a8039f | Active | €465,000 | €4,227 | 60.6% | 73 | 68 |
| Median comp | €465,000 | €4,110 | 56.1% | 71 | 72 |
Short-term vacation rental The property presents a compelling opportunity for a short-term vacation rental given its location in the Algarve tourist region, with a fair value gap of 37.7% indicating significant potential for appreciation. Despite currently yielding 0% gross, the favorable tourism dynamics can attract high occupancy rates, resulting in substantial future cash flow. Long-term rental With a fair value assessed at €794,727, the property is appealing for long-term rental strategies, especially in a market influenced by tourism that can offer consistent tenant demand. Although its condition score of 74/100 places it above average, potential landlords can benefit from the existing gap between market price and fair value to secure a stable income stream over time. Buy-and-hold Acquiring this property as a buy-and-hold investment capitalizes on the significant 37.7% gap from fair value, allowing for appreciation in a desirable location like Lagos. The 62/100 neighborhood rating suggests a community with growth potential, providing a solid foundation for long-term value enhancement despite the current lack of immediate cash flow. Not ideal for student housing The property is not well-suited for student housing, given its characteristics and risk factors associated with a vacation-oriented area. The cultural and economic environment leans heavily towards tourism rather than a steady influx of students. Not ideal for luxury market The features and market positioning of this property do not align with luxury market expectations, which typically command premium valuations far above its current listing price. Additionally, the overall neighborhood rating of 62/100 indicates limitations that are less appealing in the context of luxury investments.
Economic Vulnerability The economic stability score of 55/100 indicates a higher risk of fluctuations in rental income due to potential economic downturns affecting tenant demand and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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