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.
4-bedroom, 2-bathroom villa of 146 m², built in 1987, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa's spacious living areas include a converted garage, enhancing functionality and providing significant versatility for family gatherings or rental opportunities. Outdoor Amenities: Enjoy sunny terraces surrounding a private pool, designed for relaxation and entertaining.
The valuation. The asking price of €599,000 is significantly above fair value by €332,417 (55.5%), indicating that the property is overpriced.
Fair value modelled at €266,583 from the area baseline, adjusted for condition and location. Asking €599,000 sits €332,417 (55.5%) above — overpriced versus fair value.
Asking €599,000 versus the Luz, Lagos, Faro area baseline of €679,776 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €679,776 + condition +€7,984 + location +€21,787 = modelled fair value of €266,583 (€1,826/m²), a €332,417 (55.5%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 0900b0 | Subject | €599,000 | €4,103 | — | 75 | 73 |
| Luz · f36036 | Active | €599,000 | €4,103 | 0% | 72 | 75 |
| rua das Acácias | Active | €795,000 | €4,789 | 16.7% | 82 | 69 |
| rua Principal | Active | €1,250,000 | €4,808 | 17.2% | 72 | 62 |
| Luz · 82c6f6 | Active | €825,000 | €4,508 | 9.9% | 76 | 66 |
| Median comp | €810,000 | €4,649 | 13.3% | 74 | 68 |
Short-term vacation rental The property is overpriced at €599,000, significantly above the fair value of €266,583, indicating unsustainable yields that may deter potential investors. While the area benefits from tourist appeal with a gross yield of 3.7%, the price diminishes potential returns from the lucrative short-term rental market. Buy-and-hold Investing in this villa for a buy-and-hold strategy is not advisable due to its overvaluation, leaving a substantial gap of 55.5% compared to the estimated fair value. Although the neighborhood rates moderately at 73/100, the property’s current pricing does not align with long-term appreciation potential. Family rental With a fair value of only €266,583, the villa's listing price of €599,000 creates an unattractive situation for family rental opportunities, reflecting the property as overpriced. Despite a fair condition rating of 79/100, the inflated prices may limit the demand from families looking for affordable housing solutions.
Moderate Economic Concerns The economic stability score of 65/100 indicates that there may be fluctuations in the local market, potentially impacting tenant demand and rental income.
