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, 1-bathroom apartment of 75 m² on the 4th floor, built in 1984, energy rating F. Located on rua da Calheta, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The apartment boasts two balconies, including a larger one with a barbecue and stunning views of the Bay of Luz, enhancing outdoor living experience.
The valuation. The asking price of €400,000 sits €24,300 (5.7%) below the fair value of €424,300. This valuation indicates that the property is priced at a reasonable level, aligning well with market expectations.
Fair value modelled at €424,300 from 6 comparable sales in the area. Asking €400,000 sits €24,300 (5.7%) below — the upside to fair value.
Asking €400,000 versus the rua da Calheta area baseline of €421,493 (€5,620/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 is below the parish average, reducing 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 €421,493, adjusted for condition and micro-location, gives a modelled fair value of €424,300 (€5,657/m²), a €24,300 (5.7%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Calheta | Subject | €400,000 | €5,333 | — | 60 | 75 |
| Luz · be9355 | Active | €495,000 | €5,690 | 6.7% | — | 71 |
| beco do Norte, 2 | Active | €185,000 | €5,000 | 6.2% | 64 | 68 |
| Luz · bf2908 | Active | €490,000 | €5,765 | 8.1% | 67 | 74 |
| rua Helena do Nascimento Batista | Active | €400,000 | €6,780 | 27.1% | 75 | 71 |
| Median comp | €445,000 | €5,728 | 7.4% | 67 | 71 |
Short-term vacation rental The property offers a fair yield of 3.3%, which aligns with the predominantly tourism-driven demand in the Algarve region. Given its decent neighborhood rating of 75/100, it presents an opportunity for consistent short-term rental income, though competition in the area should be considered. Buy-and-hold With the property valued at €400,000 against a fair value of €424,300, it’s reasonable to foresee stable appreciation in line with the market trends of the Lagoa region. The condition rating of 62/100 indicates some room for improvement, allowing for potential value-add strategies over the long term. Family rental Although this 1-bed apartment may not be ideal for large families, its fair value positioning reflects a balanced entry-point for family rental scenarios in the locale. The property is situated in a respectable neighborhood of 75/100, suggesting it could attract quality tenants looking for long-term leases in a pleasant environment.
Potential Economic Fluctuations The economic stability score of 65 out of 100 indicates a moderate risk of fluctuations in the local economy that could impact rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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