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 duplex of 79 m², built in 1990, energy rating C. Located on rua do Poço, Luz parish, Lagos municipality, Faro district. This duplex features three expansive terraces with panoramic beach views, and comes fully furnished with an active Local Accommodation License for short-term rental opportunities.
The valuation. The asking price of €620,000 is significantly above fair value at €258,748, making it overpriced by €361,252 (139.6%). This property does not represent a sound financial investment given such a disparity.
Fair value modelled at €258,748 from 6 comparable sales in the area. Asking €620,000 sits €361,252 (139.6%) above — overpriced versus fair value.
Asking €620,000 versus the rua do Poço area baseline of €250,026 (€3,165/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €250,026, adjusted for condition and micro-location, gives a modelled fair value of €258,748 (€3,275/m²), a €361,252 (139.6%) gap versus the €620,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Poço | Subject | €620,000 | €7,848 | — | 78 | 73 |
| beco José Ribeiro Lopes | Active | €569,900 | €3,275 | 58.3% | 85 | 68 |
| Luz · cc9a58 | Active | €569,900 | €3,275 | 58.3% | 80 | 76 |
| Luz · 831393 | Active | €569,900 | €3,275 | 58.3% | 84 | 75 |
| beco José Ribeiro Lopes, 2 | Active | €569,900 | €3,275 | 58.3% | 80 | 68 |
| Median comp | €569,900 | €3,275 | 58.3% | 82 | 72 |
Short-term vacation rental The property’s asking price of €620,000 represents a significant 139.6% premium over its fair value of €258,748, making it an overpriced option for vacation rental investments. With a low gross yield of 2.9%, the potential returns do not justify the cost in a competitive tourist-driven market. Buy-and-hold Investing in this duplex for a buy-and-hold strategy is discouraged, given its substantial overvaluation of 139.6% compared to the fair value of €258,748. The current yield of 2.9% and a solid condition score of 83 offer limited incentive against such a high purchase price. Long-term rental The property’s excessive listing price of €620,000, 139.6% above fair value, renders it overpriced for long-term rental purposes. The gross yield of 2.9% suggests that the investment will likely struggle to deliver a satisfactory return, particularly within the context of a tenant market influenced by transient tourism dynamics.
Economic Volatility Risk The economic stability score of 55/100 indicates a potential risk of economic fluctuations that could impact tenant demand and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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