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 236 m², built in 2002, energy rating B. Located Luz parish, Lagos municipality, Faro district. This property boasts breathtaking panoramic sea views and a spacious outdoor barbecue area, perfect for entertaining and enjoying the Mediterranean lifestyle.
The valuation. The asking price of €1,395,000 significantly exceeds the fair value of €447,509 by €947,491, or 67.9%, indicating that the property is overpriced.
Fair value modelled at €447,509 from the area baseline, adjusted for condition and location. Asking €1,395,000 sits €947,491 (67.9%) above — overpriced versus fair value.
Asking €1,395,000 versus the Luz, Lagos, Faro area baseline of €1,064,596 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 89 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €1,064,596 + condition +€29,500 + location +€35,217 = modelled fair value of €447,509 (€1,896/m²), a €947,491 (67.9%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 090273 | Subject | €1,395,000 | €5,911 | — | 80 | 73 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 20.3% | 80 | 70 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 65.4% | 80 | 72 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 9.6% | 77 | 66 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 48.2% | 75 | 65 |
| Median comp | €1,587,500 | €6,796 | 15.0% | 79 | 68 |
Short-term vacation rental\nThe property is overpriced with a fair value of €447,509 compared to its listing price of €1,395,000, resulting in a significant gap of 67.9%. With a gross yield of 0%, this strategy does not provide a viable return on investment for short-term rentals in a competitive tourist market. \nBuy-and-hold\nInvesting in this property as a long-term buy-and-hold is not advisable given that it is overpriced at €1,395,000 while only being worth €447,509, indicating poor value retention. The lack of yield and high initial investment would likely lead to prolonged financial underperformance in this strategy. \nValue-add renovation\nEngaging in a value-add renovation strategy is unlikely to yield profitable results as the initial listing price of €1,395,000 exceeds the fair market value of €447,509 by a staggering 67.9%. The significant upfront cost, combined with the current property valuation, diminishes the appeal of pursuing renovations to enhance value.
Economic volatility risk The property's economic stability score of 65/100 indicates potential volatility, which could impact future rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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