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 133 m², built in 2005. Located on urbanização Montinhos do Burgau, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The apartment boasts a built-in fireplace in the living room, enhancing comfort during cooler months, and offers large terraces with varying orientations for optimal sun exposure throughout the day.
The valuation. The asking price of €375,000 is significantly below fair value at €624,286, representing a discount of €249,286 (39.9%). This property is clearly underpriced in the current market.
Fair value modelled at €624,286 from 6 comparable sales in the area. Asking €375,000 sits €249,286 (39.9%) below — the upside to fair value.
Asking €375,000 versus the urbanização Montinhos do Burgau area baseline of €610,819 (€4,593/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €610,819, adjusted for condition and micro-location, gives a modelled fair value of €624,286 (€4,694/m²), a €249,286 (39.9%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Montinhos do Burgau | Subject | €375,000 | €2,820 | — | 78 | 74 |
| Luz · 28b9cd | Active | €435,000 | €2,825 | 0.2% | 75 | 70 |
| rua 25 de Abril | Active | €430,000 | €4,388 | 55.6% | 78 | 70 |
| Luz · 4a433c | Active | €390,000 | €5,132 | 82.0% | 72 | 73 |
| Luz · 5ed0a7 | Active | €520,000 | €3,190 | 13.1% | — | 75 |
| Median comp | €432,500 | €3,789 | 34.4% | 75 | 72 |
Short-term vacation rental The 2-bed apartment in Luz, Lagos, is positioned to capitalize on the area’s robust tourism, making it an attractive option for short-term vacation rentals despite the current zero yield. With its fair value calculated at €624,286, the property’s potential appreciation of 39.9% indicates strong future earnings potential for this strategy. Long-term rental Although the property currently offers a 0% gross yield, its fair value of €624,286 suggests significant room for appreciation over time in the long-term rental market. The well-rated condition (80/100) contributes to its potential for attracting quality tenants in this desirable Algarve neighborhood. Buy-and-hold Given that the property is valued at €375,000 while fair value is assessed at €624,286, capturing this 39.9% gap in the future supports a strong buy-and-hold strategy. This apartment's location in a high-demand tourist region ensures that long-term appreciation is likely, making it a sound investment choice.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of economic downturns that could impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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