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.
5-bedroom, 3-bathroom country_house of 260 m², built in 1989, energy rating D. Located on rua Principal, Luz parish, Lagos municipality, Faro district. Noteworthy Features: This property includes mature fig trees that enhance the landscape and charm, and offers potential for construction expansion on the urban plot, subject to permits.
The valuation. The asking price of €1,250,000 sits significantly above the fair value of €441,963, resulting in an excessive markup of €808,037 (64.6%). Verdict: overpriced. Buy-to-flip angle. The resale strategy hinges on cosmetic renovations to modernize dated finishes, targeting a strategic exit point for buyers seeking upscale rentals or vacation homes. Buy-to-let angle. With an estimated rental income of €2,917 per month, this property presents a gross yield of 2.8%, catering well to the short-term vacation rental market in the Algarve region.
Fair value modelled at €441,963 from the area baseline, adjusted for condition and location. Asking €1,250,000 sits €808,037 (64.6%) above — overpriced versus fair value.
Asking €1,250,000 versus the rua Principal area baseline of €1,210,560 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Principal
Area baseline €1,210,560 + condition +€0 + location +€20,243 = modelled fair value of €441,963 (€1,700/m²), a €808,037 (64.6%) gap versus the €1,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Principal | Subject | €1,250,000 | €4,808 | — | 72 | 62 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 34.7% | 77 | 66 |
| Luz · 0900b0 | Active | €599,000 | €4,103 | 14.7% | 75 | 73 |
| Luz · f36036 | Active | €599,000 | €4,103 | 14.7% | 72 | 75 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 53.2% | 74 | 75 |
| Median comp | €789,500 | €4,103 | 14.7% | 75 | 74 |
Short-term vacation rental The property’s asking price of €1,250,000 reflects a significant overvaluation of 64.6% compared to its fair value of €441,963, reducing its attractiveness for short-term vacation rentals. With a low gross yield of 2.8% and a neighborhood rating of 62/100, this investment may struggle to generate competitive returns. Buy-and-hold Listing at €1,250,000, this property appears overpriced by 64.6% against its fair value of €441,963, making it a less favorable buy-and-hold opportunity. The current yield of 2.8% coupled with a condition score of 75/100 suggests that long-term appreciation may not compensate for the high entry price. Family rental At €1,250,000, the property is overpriced by 64.6% when assessed against a fair value of €441,963, which undermines its viability as a family rental investment. The combination of a low yield of 2.8% and a neighborhood rating of 62/100 indicates that potential rental income may not justify the steep purchase price.
Economic Dependence Risk The economic stability score of 60/100 suggests a potential vulnerability to economic downturns, impacting tenant demand and rental income continuity.
