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 on rua Doutora Raul Baptista Horta, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a converted garage suite ideal for guests and a tranquil back garden retreat with established vegetation and a jacuzzi for relaxation.
The valuation. The asking price of €825,000 is significantly above the fair value of €320,926, representing an overvaluation of €504,074 (61.1%). This property is overpriced and does not present a compelling investment opportunity at its current asking price.
Fair value modelled at €320,926 from the area baseline, adjusted for condition and location. Asking €825,000 sits €504,074 (61.1%) above — overpriced versus fair value.
Asking €825,000 versus the rua Doutora Raul Baptista Horta area baseline of €741,150 (€4,050/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 73 · Materials 78 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 75 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Doutora Raul Baptista Horta
Area baseline €741,150 + condition +€6,291 + location +€17,810 = modelled fair value of €320,926 (€1,754/m²), a €504,074 (61.1%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Doutora Raul Baptista Horta | Subject | €825,000 | €4,508 | — | 73 | 65 |
| São Gonçalo de Lagos · 6fb85c | Active | €1,300,000 | €3,148 | 30.2% | 73 | 69 |
| São Gonçalo de Lagos · 956e96 | Active | €1,300,000 | €3,148 | 30.2% | 70 | 78 |
| São Gonçalo de Lagos · ba574b | Active | €1,300,000 | €3,148 | 30.2% | 72 | 78 |
| São Gonçalo de Lagos · 4a7fec | Active | €1,300,000 | €3,148 | 30.2% | 73 | 69 |
| Median comp | €1,300,000 | €3,148 | 30.2% | 73 | 74 |
Short-term vacation rental Despite the vibrant tourism scene in Luz, the 61.1% gap from fair value indicates that this property is overpriced for a short-term vacation rental strategy. This could lead to diminished returns as the gross yield of 3.7% does not justify such a premium price in a market heavily influenced by seasonal fluctuations. Family rental The family rental strategy is compromised by the property's overpriced nature, with a significant gap from the fair value suggesting a lack of attractive investment potential. Moreover, while the condition (77/100) and neighborhood amenities are decent, they do not outweigh the reality of paying excessively in a fluctuating housing market. Buy-and-hold A buy-and-hold strategy is unwise for this property due to its substantial overvaluation, as indicated by the 61.1% gap from fair value. Even though the location benefits from tourism-centric amenities, the high purchase price limits future appreciation potential and cash flow stability, resulting in an unattractive long-term asset. Not ideal for: Student housing, Industrial investment, Agricultural development
Low Economic and Tenant Stability Risk The property is at risk due to a low economic stability score of 55 and a tenant stability score of 60, indicating potential difficulties in maintaining occupancy and rental income.
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