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 house of 100 m², built in 2026, energy rating C. Located on urbanização Monte Lemos, 5C, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes two private terraces with sea glimpses, offering versatile outdoor living options and enhancing its appeal for relaxation in a sought-after coastal area.
The valuation. The asking price of €590,000 is significantly above the fair value of €451,042, representing an excess of €138,958 (30.8%). This property is overpriced based on current market evaluations.
Fair value modelled at €451,042 from 6 comparable sales in the area. Asking €590,000 sits €138,958 (30.8%) above — overpriced versus fair value.
Asking €590,000 versus the urbanização Monte Lemos, 5C area baseline of €442,676 (€4,427/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €442,676, adjusted for condition and micro-location, gives a modelled fair value of €451,042 (€4,510/m²), a €138,958 (30.8%) gap versus the €590,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Monte Lemos, 5C | Subject | €590,000 | €5,900 | — | 73 | 60 |
| rua David Mourão Ferreira | Active | €590,000 | €5,463 | 7.4% | 80 | 73 |
| beco Eugénio de Andrade | Active | €625,000 | €3,811 | 35.4% | 70 | 72 |
| rua Longa | Active | €750,000 | €4,688 | 20.6% | 68 | 72 |
| Luz · 483a5f | Active | €455,000 | €4,333 | 26.6% | 80 | 71 |
| Median comp | €607,500 | €4,511 | 23.6% | 75 | 72 |
Short-term vacation rental This property, listed at €590,000, is overpriced compared to its fair value of €451,042, presenting a significant gap of 30.8%. Given the area's seasonal employment and tourism-driven economy, the potential returns from short-term rentals may not justify the high purchase price. Buy-and-hold With a gross yield of only 3.7%, the property appears to be overpriced at €590,000 when fair value is assessed at €451,042. Investors may face challenges in achieving sustainable growth in this market, further impacted by economic instability and tenant profiles influenced by tourism. Family rental Although slightly functional, the property's condition rating of 75/100 and the neighborhood's score of 60/100 indicate it is overpriced at €590,000 in contrast to a fair value of €451,042. The reliance on tourism and seasonal jobs negatively affects the long-term rental appeal for families, making this strategy less viable for this specific property.
Economic volatility risk The property's economic stability score of 50/100 indicates a significant risk due to potential fluctuations in the local economy that could impact tenant demand and rental income.
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