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.
1-bedroom, 2-bathroom apartment of 80 m², built in 2009, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The apartment is part of a small condominium benefiting from underground parking access and features electric shutters for enhanced security and convenience.
The valuation. The asking price of €269,000 sits €69,182 below the fair value of €338,182, indicating that this property is underpriced by 20.5%. This presents a compelling opportunity for discerning investors.
Fair value modelled at €338,182 from 6 comparable sales in the area. Asking €269,000 sits €69,182 (20.5%) below — the upside to fair value.
Asking €269,000 versus the Luz, Lagos, Faro area baseline of €331,113 (€4,139/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 €331,113, adjusted for condition and micro-location, gives a modelled fair value of €338,182 (€4,227/m²), a €69,182 (20.5%) gap versus the €269,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · ec1af1 | Subject | €269,000 | €3,363 | — | 74 | 70 |
| Luz · a8058b | Active | €465,000 | €4,227 | 25.7% | 72 | 65 |
| Luz · a80abc | Active | €465,000 | €4,227 | 25.7% | 72 | 73 |
| Luz · 83118b | Active | €465,000 | €4,227 | 25.7% | 75 | 72 |
| rua da Escola Primária, 108 | Active | €360,000 | €4,500 | 33.8% | 75 | 72 |
| Median comp | €465,000 | €4,227 | 25.7% | 74 | 72 |
Short-term vacation rental Short-term vacation rentals in Luz, Lagos present an attractive opportunity due to the property's location near major Algarve amenities and tourism infrastructure, despite a current yield of 0%. The gap of 20.5% below fair value indicates significant potential for capital appreciation as tourist demand continues to grow in this sought-after region. Long-term rental With a fair value significantly higher than the listing price, this 1-bed apartment may serve as a valuable long-term rental investment, particularly given the neighborhood's solid tenant quality and decent condition rating of 77/100. The current listing price, being 20.5% below fair value, provides an excellent entry point for securing stable rental income over the long term. Buy-and-hold Investing in this property as a buy-and-hold strategy is promising, as the nearby amenities and tourism appeal suggest long-term value appreciation. Acquiring the apartment at a price 20.5% lower than its fair value positions the investor favorably for capital gains and future market growth. Not ideal for student housing Given the characteristics of the property and its location, it does not cater well to the needs of student housing in the area. The rental market dynamics and tenant quality suggest a preference for other rental strategies. Not ideal for industrial use The apartment's residential nature and location near tourist amenities make it wholly unsuitable for industrial use, which requires different spatial and infrastructural parameters. Therefore, pursuing an industrial investment strategy would not be feasible. Not ideal for luxury market This 1-bed apartment does not meet the criteria to compete in the luxury market, which demands higher-end finishes and exclusivity. As such, targeting the luxury segment would be misaligned with the property's value potential.
Tenant turnover risk With both economic and tenant stability scores at 65/100, there is a heightened risk of tenant turnover, potentially leading to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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