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 211 m², built in 2008. Located on rua da Adriça, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a versatile attic suite with an en-suite bathroom, ideal for guests or a private workspace, alongside a spacious office that offers additional functionality.
The valuation. The asking price of €775,000 sits €380,831 (49.1%) above the fair value of €394,169, marking this property as overpriced. This significant discrepancy suggests that investors should approach with caution regarding potential returns.
Fair value modelled at €394,169 from the area baseline, adjusted for condition and location. Asking €775,000 sits €380,831 (49.1%) above — overpriced versus fair value.
Asking €775,000 versus the rua da Adriça area baseline of €982,416 (€4,656/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 84 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Adriça
Area baseline €982,416 + condition +€20,441 + location +€31,486 = modelled fair value of €394,169 (€1,868/m²), a €380,831 (49.1%) gap versus the €775,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Adriça | Subject | €775,000 | €3,673 | — | 80 | 73 |
| Luz · 82c6f6 | Active | €825,000 | €4,508 | 22.7% | 76 | 66 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 76.3% | 77 | 66 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 16.7% | 80 | 66 |
| Luz · 0900b0 | Active | €599,000 | €4,103 | 11.7% | 75 | 73 |
| Median comp | €712,000 | €4,397 | 19.7% | 77 | 66 |
Short-term vacation rental Given the listing price of €775,000, which is 49.1% above the fair value of €394,169, this property presents an overpriced investment opportunity in the tourist-heavy region of Algarve. The 3% gross yield further indicates that potential returns may not compensate for the inflated price. Long-term rental With the property listed at €775,000, significantly above the fair value of €394,169, this investment is not well-positioned for long-term rental benefits. The combination of a relatively modest yield of 3% and overpricing suggests that rental income will struggle to justify the market entry cost. Not ideal for: Student housing The current pricing of €775,000 places this property outside the financial reach for most students, making it unsuitable for student housing. Given that the location heavily caters to tourists and not a student demographic, this strategy would be ineffective in maximizing rental demand.
Economic Vulnerability A score of 60/100 for economic stability indicates a moderate risk of economic downturns affecting property values or tenant demand.
