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.
3-bedroom, 4-bathroom house of 183 m², built in 2001, energy rating C. Located Luz parish, Lagos municipality, Faro district. Unique Feature: The garage conversion provides a versatile additional space suitable for a guest annex, office, or leisure area, enhancing the property’s functionality and potential uses. Location Highlight: Just a 10-minute walk to the vibrant village center with bars, restaurants, and the stunning beach. Outdoor Space: Enjoy a private enclosed garden featuring a jacuzzi, offering seclusion and year-round relaxation opportunities.
The valuation. The asking price of €825,000 is significantly above fair value, which is €325,259, resulting in an overpriced conclusion of €499,741 (60.6%). This property does not represent a viable investment based on its current listing. Buy-to-flip angle. A buy-to-flip strategy may not be effective given the high purchase price; considerable value-add renovations would be needed to attract resale at market value. Potential buyers should thoroughly assess renovation costs against projected profits. Buy-to-let angle. The gross yield of 3.8% provides a rental income potential of approximately €2,612/month. Short-term vacation rentals could leverage the property's tourist location in Algarve, maximizing income during peak travel seasons.
Fair value modelled at €325,259 from the area baseline, adjusted for condition and location. Asking €825,000 sits €499,741 (60.6%) above — overpriced versus fair value.
Asking €825,000 versus the Luz, Lagos, Faro area baseline of €741,150 (€4,050/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 76 · Materials 82 · Room dimensions 77). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 66/100 (Housing Market 78 · Amenities 65 · Economic 55 · Tenant Quality 64). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €741,150 + condition +€9,436 + location +€18,997 = modelled fair value of €325,259 (€1,777/m²), a €499,741 (60.6%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 82c6f6 | Subject | €825,000 | €4,508 | — | 76 | 66 |
| rua da Adriça | Active | €775,000 | €3,673 | 18.5% | 80 | 73 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 43.7% | 77 | 66 |
| Luz · f36036 | Active | €599,000 | €4,103 | 9.0% | 72 | 75 |
| Luz · 0900b0 | Active | €599,000 | €4,103 | 9.0% | 75 | 73 |
| Median comp | €687,000 | €4,103 | 9.0% | 76 | 73 |
Short-term vacation rental The property is overpriced at €825,000, presenting a significant gap of 60.6% from its fair value of €325,259, which diminishes its attractiveness for short-term vacation rental investments. With a gross yield of only 3.8%, the financial return does not justify the high acquisition cost in a market primarily driven by tourism. Buy-and-hold At €825,000, the property is overpriced compared to the fair value of €325,259, indicating that a buy-and-hold strategy would be less effective given the current inflated price. The economic reliance on tourism and seasonal factors further suggests that the expected appreciation might not materialize, making this strategy less viable in the short to medium term. Value-add renovation This property is overpriced at €825,000, with a substantial gap from its fair value of €325,259, leading to doubts about the feasibility of a value-add renovation strategy. Although the current condition is rated 78/100, the high purchase price limits the potential return on investment after renovations, especially in a competitive market that favors lower entry costs.
Economic Vulnerability The property may face potential financial instability due to its economic stability score of 55/100, indicating a below-average economic environment that could impact rental income and tenant retention.
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