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, 1-bathroom house of 91 m², energy rating E. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The home includes a wood-burning stove in the kitchen, enhancing its cozy atmosphere, and features private outdoor spaces ideal for relaxation. Location Advantage: Situated just 3 km from Praia da Luz, offering peace while remaining close to essential amenities.
The valuation. The asking price of €475,000 exceeds the fair value of €383,627 by €91,373 (23.8%), indicating that the property is overpriced. Buy-to-flip angle. A quick resale strategy could target buyers seeking investment opportunities, with potential for significant returns after minor renovations. Buy-to-let angle. The rental income strategy expects to achieve a gross yield of 3.8%, generating approximately €1,504 per month, appealing for long-term tenants in a tourist-friendly area.
Fair value modelled at €383,627 from 5 comparable sales in the area. Asking €475,000 sits €91,373 (23.8%) above — overpriced versus fair value.
Asking €475,000 versus the Luz, Lagos, Faro area baseline of €375,384 (€4,125/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 is above the parish average, lifting 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 €375,384, adjusted for condition and micro-location, gives a modelled fair value of €383,627 (€4,216/m²), a €91,373 (23.8%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 800458 | Subject | €475,000 | €5,220 | — | 70 | 75 |
| Luz · 9117dc | Active | €490,000 | €5,632 | 7.9% | 75 | 71 |
| Luz · 46814a | Active | €430,000 | €4,216 | 19.2% | 75 | 73 |
| Luz · 46819a | Active | €550,000 | €3,481 | 33.3% | — | 72 |
| Luz · 483a5f | Active | €455,000 | €4,333 | 17.0% | 80 | 71 |
| Median comp | €472,500 | €4,275 | 18.1% | 75 | 72 |
Short-term vacation rental The property is overpriced at €475,000, representing a 23.8% gap compared to its fair value of €383,627, which diminishes its appeal as a short-term vacation rental. With a gross yield of 3.8%, the investment returns may not be attractive enough to justify the elevated purchase price. Buy-and-hold Although the property is situated in the desirable Algarve region, its listing price significantly exceeds the fair value, making it less attractive for a buy-and-hold strategy. The current yield of 3.8% does not compensate for the overvaluation, hindering potential long-term growth and appreciation. Family rental As a family rental, the property’s listing price of €475,000 is unjustifiable given the fair value of €383,627, marking it as overpriced. The yield of 3.8% falls short for attracting families who typically prioritize long-term stability and affordability over premium pricing.
Economic Vulnerability Given the economic stability score of 60/100, there is a risk that economic fluctuations could negatively impact rental income, despite a strong tenant stability score of 80/100.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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