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 158 m², built in 1990, energy rating E. Located on estrada do Burgau, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property offers a separate living/TV room that seamlessly connects to a private rear terrace with scenic views, enhancing both relaxation and entertaining options. Location Appeal: Nestled between Praia da Luz and Burgau, it provides quick access to vibrant local amenities and picturesque beaches.
The valuation. The asking price of €450,000 sits significantly below the fair value of €787,613, presenting a discount of €337,613, or 42.9%. This property is notably underpriced, offering a compelling opportunity for investment.
Fair value modelled at €787,613 from 6 comparable sales in the area. Asking €450,000 sits €337,613 (42.9%) below — the upside to fair value.
Asking €450,000 versus the estrada do Burgau area baseline of €774,686 (€4,903/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €774,686, adjusted for condition and micro-location, gives a modelled fair value of €787,613 (€4,985/m²), a €337,613 (42.9%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada do Burgau | Subject | €450,000 | €2,848 | — | 72 | 65 |
| Luz · 800458 | Active | €475,000 | €5,220 | 83.3% | 70 | 75 |
| estrada Luz-Burgau | Active | €475,000 | €5,220 | 83.3% | 75 | 74 |
| Luz · 9117dc | Active | €490,000 | €5,632 | 97.8% | 75 | 71 |
| rua da Praia | Active | €475,000 | €4,750 | 66.8% | 60 | 70 |
| Median comp | €475,000 | €5,220 | 83.3% | 73 | 73 |
Short-term vacation rental This property presents an attractive opportunity for short-term vacation rentals, given its fair value of €787,613 compared to its listing at €450,000, marking a significant 42.9% gap. The robust gross yield of 5.3% enhances its appeal in the tourist-centric Algarve market, which can capitalize on seasonal demand. Long-term rental With a fair value significantly higher than the listing price, this property could be a strong contender for long-term rental solutions, appealing to stable tenant profiles seeking competitive pricing. The neighborhood's qualities, rated at 65/100, support the potential for consistent occupancy in a desirable area of Luz. Buy-and-hold This property is well-positioned for a buy-and-hold investment strategy, as its current listing price is substantially lower than its fair value, suggesting a strong equity gain potential over time. The combination of a decent condition score of 75/100 and healthy gross yield of 5.3% indicates a solid foundation for appreciation in an area poised for demand. Not ideal for The property is not suitable for student housing, as the neighborhood's overall rating of 65/100 may not meet the specific demands of student renters. Additionally, the luxury market is likely too competitive and may not yield the appropriate returns against the current pricing. Value-add renovation Given its current condition rating of 75/100 and the large disparity from the fair valuation, a value-add renovation strategy may not be advisable, as the costs could outweigh potential benefits. Investing in upgrades in an area already experiencing saturation could lead to financial risks rather than profitable returns.
Economic Vulnerability The property has a moderate economic stability score of 60/100, indicating potential susceptibility to market fluctuations that could impact 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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