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, 3-bathroom villa of 179 m², built in 2003, energy rating A. Located on rua da Calheta, Luz parish, Lagos municipality, Faro district. Noteworthy Features: This villa has the largest private garden in the condominium, featuring a sheltered plunge pool and a sauna for year-round relaxation. Location Benefits: It’s less than 100 metres from the ocean, nestled above scenic rock formations.
The valuation. The asking price of €1,750,000 significantly exceeds the fair value of €336,305 by €1,413,695 (80.8%). This is indicative of an overpriced property that does not align with market expectations.
Fair value modelled at €336,305 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €1,413,695 (80.8%) above — overpriced versus fair value.
Asking €1,750,000 versus the rua da Calheta area baseline of €833,424 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Calheta
Area baseline €833,424 + condition +€20,417 + location +€25,550 = modelled fair value of €336,305 (€1,879/m²), a €1,413,695 (80.8%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Calheta | Subject | €1,750,000 | €9,777 | — | 80 | 72 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 27.2% | 80 | 70 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 68.7% | 75 | 65 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 39.5% | 80 | 73 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 41.8% | — | 68 |
| Median comp | €1,141,500 | €5,802 | 40.7% | 80 | 69 |
Short-term vacation rental The villa's high listing price of €1,750,000 reveals an exaggerated market expectation, as the fair value is significantly lower at €336,305, equating to an 80.8% gap. With a gross yield of only 1.6%, this property struggles to justify potential returns for short-term rentals in a tourism-based economy. Buy-and-hold Holding onto this property is not recommended given its current price point, which is substantially higher than its fair value, likely hindering appreciation in the long term. At an 80.8% disparity from fair value, the investment lacks the foundational support for sustainable growth in the buy-and-hold strategy. Family rental With the valuation sitting at €1,750,000 but a fair value of just €336,305, the property is sharply overpriced for a family rental market that typically requires viable rental yields. The gross yield of 1.6% indicates minimal profitability, making it an unfit choice for attracting long-term family tenants while setting unreasonable expectations. Not ideal for: Student housing, Industrial purposes, Luxury market
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact property demand and rental income.
