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 house of 180 m², built in 1994, energy rating C. Located on rua do Vale da Zorra, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a spacious 60 m² south-facing terrace, perfect for outdoor leisure, and an independent annex that adds flexible living options for guests or workspace. Condition Notes: While generally well-maintained, minor updates could enhance some aspects of the home.
The valuation. The asking price of €430,000 sits significantly above fair value at €319,316, creating a discrepancy of €110,684 (25.7%). The property is therefore considered overpriced.
Fair value modelled at €319,316 from the area baseline, adjusted for condition and location. Asking €430,000 sits €110,684 (25.7%) above — overpriced versus fair value.
Asking €430,000 versus the rua do Vale da Zorra area baseline of €838,080 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 70 · Materials 76 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 78/100 (Housing Market 85 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua do Vale da Zorra
Area baseline €838,080 + condition -€5,344 + location +€32,700 = modelled fair value of €319,316 (€1,774/m²), a €110,684 (25.7%) gap versus the €430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Vale da Zorra | Subject | €430,000 | €2,389 | — | 70 | 78 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 79.4% | 80 | 66 |
| Luz · 261e65 | Active | €530,000 | €3,487 | 46.0% | 70 | 70 |
| via Pública | Active | €530,000 | €3,557 | 48.9% | 77 | 63 |
| Luz · f36036 | Active | €599,000 | €4,103 | 71.7% | 72 | 75 |
| Median comp | €530,000 | €3,830 | 60.3% | 75 | 68 |
Short-term vacation rental This property, priced at €430,000, exceeds its fair value of €319,316 by 25.7%, indicating it is overpriced for the short-term vacation rental market. Despite being in a tourist-driven area with a good neighbourhood score of 78/100, the yield of 4.1% is insufficient to justify this price premium. Buy-and-hold The property’s listing price of €430,000 is significantly above its fair value of €319,316, making it overpriced for a buy-and-hold investment strategy. While the neighbourhood is rated 78/100 for quality, the gross yield of 4.1% suggests limited long-term appreciation potential at this cost. Family rental At €430,000, the property is overpriced compared to its fair value of €319,316, which casts doubt on its suitability for family rental prospects. Although the area is known for low crime and decent amenities, the yield of 4.1% does not support such a high acquisition cost for a long-term rental strategy.
Economic Vulnerability With an economic stability score of 70/100, there is a moderate risk of economic downturns affecting property demand and rental income.
