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 villa of 93 m², energy rating D. Located Luz parish, Lagos municipality, Faro district. This villa features high-end renovations with premium materials, including sleek handleless cabinetry and designer lighting, creating a luxurious yet comfortable living space overlooking the pool.
The valuation. The asking price of €415,000 is lower than the fair value of €468,643, indicating the property is underpriced by €53,643 (11.4%). This presents an attractive opportunity for investors seeking value. Buy-to-flip angle. With the villa's superior quality and ideal location, a buy-to-flip strategy could involve minor renovations to maximize resale potential, appealing to buyers in a competitive market. Buy-to-let angle. Utilizing a buy-to-let approach, the estimated rental income of €2,110 per month offers a gross yield of 6.1%, providing consistent cash flow in a high-demand tourist area.
Fair value modelled at €468,643 from 6 comparable sales in the area. Asking €415,000 sits €53,643 (11.4%) below — the upside to fair value.
Asking €415,000 versus the Luz, Lagos, Faro area baseline of €454,886 (€4,891/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €454,886, adjusted for condition and micro-location, gives a modelled fair value of €468,643 (€5,039/m²), a €53,643 (11.4%) gap versus the €415,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 07fc84 | Subject | €415,000 | €4,462 | — | 88 | 70 |
| Luz · e3ac04 | Active | €420,000 | €4,615 | 3.4% | 88 | 66 |
| Luz · 483a5f | Active | €455,000 | €4,333 | 2.9% | 80 | 71 |
| urbanização Monte Lemos, 5C | Active | €590,000 | €5,900 | 32.2% | 73 | 60 |
| rua David Mourão Ferreira | Active | €590,000 | €5,463 | 22.4% | 80 | 73 |
| Median comp | €522,500 | €5,039 | 12.9% | 80 | 69 |
Short-term vacation rental The property presents an attractive opportunity for short-term vacation rental with a yield of 6.1%, which is particularly promising given the strong tourist appeal of the Algarve region. With the fair value set at €468,643, this villa is effectively priced at a strategic level, capturing tourist demand while providing solid returns. Long-term rental With a gross yield of 6.1%, this villa stands out as a prime candidate for long-term rental, particularly appealing to renters seeking quality accommodation in a desirable neighborhood. The property's condition rating of 84/100 supports its attractiveness, enhancing its potential for steady occupancy and rental income. Value-add renovation While already in good condition with an 84/100 rating, there exists an opportunity for value-add renovation to elevate the property's appeal and justify an increase in rental rates. At a current listing of €415,000 against a fair value of €468,643, strategic improvements could yield significant enhancements in both rental income and overall property appreciation.
Economic and Tenant Stability Risks With both economic stability and tenant stability rated at 65/100, there is a high potential for fluctuations in rental income and tenant turnover, impacting cash flow consistency and ownership profitability.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Sign in to buy the report or use a credit
