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 90 m², energy rating B. Located Luz parish, Lagos municipality, Faro district. Key Features: The property includes a cozy fireplace in the living room, enhancing its inviting atmosphere during cooler months and providing an enjoyable retreat year-round.
The valuation. The asking price of €415,000 is slightly below the fair value of €445,860, sitting €30,860 (6.9%) lower. This valuation suggests the property is fairly priced, maintaining a competitive edge in the current market.
Fair value modelled at €445,860 from 6 comparable sales in the area. Asking €415,000 sits €30,860 (6.9%) below — the upside to fair value.
Asking €415,000 versus the Luz, Lagos, Faro area baseline of €437,484 (€4,861/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €437,484, adjusted for condition and micro-location, gives a modelled fair value of €445,860 (€4,954/m²), a €30,860 (6.9%) gap versus the €415,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · e8354e | Subject | €415,000 | €4,611 | — | 76 | 80 |
| Luz · 3a6fe5 | Active | €545,000 | €2,795 | 39.4% | 75 | 71 |
| Luz · 46814a | Active | €430,000 | €4,216 | 8.6% | 75 | 73 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 23.4% | — | 68 |
| avenida Atlântico | Active | €475,000 | €3,958 | 14.2% | 80 | 71 |
| Median comp | €510,000 | €4,087 | 11.4% | 75 | 71 |
Short-term vacation rental The property offers a competitive gross yield of 3.8% and is located in a high-demand tourist area near the Algarve, making it a suitable option for short-term vacation rentals. However, the fair value assessment suggests that while it's not overpriced, investors should be prepared for fluctuating occupancy rates influenced by seasonal tourism patterns. Long-term rental Given the property's decent condition rating of 78/100 and a strong neighborhood score of 80/100, it presents a reasonably attractive option for long-term rentals. The fair value indicates that while it aligns well with rental market expectations, potential investors should monitor the economic dependence on seasonal tourism. Buy-and-hold The property could serve as a sound buy-and-hold investment, particularly in light of the ongoing influx of visitors to the Algarve region. Since the property is assessed at fair value, investors might experience limited appreciation potential, emphasizing the need for a well-considered long-term strategy. Not ideal for: Student housing, Industrial uses The property's characteristics and location make it unfit for student housing or industrial purposes, which typically require different specifications and tenant bases. Investors should focus on leveraging its strengths in the residential rental market instead.
Economic Sensitivity The moderate economic stability score of 75/100 suggests that the property may be vulnerable to economic downturns, potentially affecting rental income and tenant 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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