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 91 m², energy rating D. Located Luz parish, Lagos municipality, Faro district. This property features exposed wooden beams and modern finishes, providing a blend of rustic charm and contemporary elegance that enhances its appeal in Luz's residential market.
The valuation. The asking price of €420,000 sits 3.4% below the fair value of €434,667, indicating the property is fairly priced for the market conditions and location.
Fair value modelled at €434,667 from 6 comparable sales in the area. Asking €420,000 sits €14,667 (3.4%) below — the upside to fair value.
Asking €420,000 versus the Luz, Lagos, Faro area baseline of €421,869 (€4,636/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €421,869, adjusted for condition and micro-location, gives a modelled fair value of €434,667 (€4,777/m²), a €14,667 (3.4%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · e3ac04 | Subject | €420,000 | €4,615 | — | 88 | 66 |
| estrada Luz-Burgau | Active | €475,000 | €5,220 | 13.1% | 75 | 74 |
| Luz · 800458 | Active | €475,000 | €5,220 | 13.1% | 70 | 75 |
| estrada do Burgau | Active | €450,000 | €2,848 | 38.3% | 72 | 65 |
| Luz · 46814a | Active | €430,000 | €4,216 | 8.7% | 75 | 73 |
| Median comp | €462,500 | €4,718 | 2.2% | 74 | 74 |
Short-term vacation rental The property’s location in the popular tourist region of Luz, Lagos makes it suitable for short-term vacation rentals, generating a steady income stream during peak seasons. With a gross yield of 5%, it can offer decent returns, although the neighbourhood rating of 66/100 indicates some room for improvement in tenant support services. Buy-and-hold Holding this property long-term could yield stable returns given the established demand from tourists and seasonal economic patterns in the Algarve region. With a fair value gap of just 3.4%, investors should anticipate moderate appreciation rather than significant value growth over time. Value-add renovation Considering the property’s good condition rating of 82/100, renovations could enhance its appeal to vacation renters and increase rental income. However, with the current fair value, the return on investment from renovations may be limited unless the neighbourhood amenities improve significantly. Not ideal for This property is not well-suited for student housing due to its tourist-centric location and seasonal economic patterns. Additionally, its characteristics do not align with the luxury market or industrial use, which require different criteria and investment strategies.
Economic Vulnerability With an Economic Stability score of 65/100, there is significant potential for economic downturns that could negatively impact property value 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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