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, 2-bathroom house of 166 m², built in 2001, energy rating C. Located on rua das Acácias, Luz parish, Lagos municipality, Faro district. This property boasts a barbecue area and a seamless flow from indoor to outdoor living, perfect for entertaining against a backdrop of stunning ocean views.
The valuation. The asking price of €795,000 is substantially above the fair value of €310,465, resulting in an overvaluation of €484,535 (60.9%). This property is considered overpriced in the current market.
Fair value modelled at €310,465 from the area baseline, adjusted for condition and location. Asking €795,000 sits €484,535 (60.9%) above — overpriced versus fair value.
Asking €795,000 versus the rua das Acácias area baseline of €672,300 (€4,050/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 88 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 75 · Amenities 65 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua das Acácias
Area baseline €672,300 + condition +€20,750 + location +€20,463 = modelled fair value of €310,465 (€1,870/m²), a €484,535 (60.9%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Acácias | Subject | €795,000 | €4,789 | — | 82 | 69 |
| Luz · 96c112 | Active | €790,000 | €5,163 | 7.8% | 75 | 71 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 10.5% | 80 | 66 |
| Luz · f36036 | Active | €599,000 | €4,103 | 14.3% | 72 | 75 |
| Luz · 0900b0 | Active | €599,000 | €4,103 | 14.3% | 75 | 73 |
| Median comp | €599,000 | €4,195 | 12.4% | 75 | 72 |
Short-term vacation rental The property is overpriced at €795,000 compared to a fair value of €310,465, leading to a 60.9% gap that undermines potential profitability in this volatile market. Although its proximity to beaches attracts tourists, a gross yield of only 3.6% signals inadequate returns for a short-term rental investment. Buy-and-hold This property does not present a promising buy-and-hold opportunity given its significant overvaluation of €795,000 against a fair value of €310,465, resulting in a concerning 60.9% pricing gap. The low yield of 3.6% further indicates that holding this asset will likely yield disappointing returns over the long term. Long-term rental Investing in this property as a long-term rental is unfavorable due to its price of €795,000 being considerably above the fair value of €310,465, creating a 60.9% disparity. With a modest gross yield of 3.6%, the potential for lucrative long-term rental income appears limited, making it a poor fit for sustained rental strategies.
Moderate economic risk The economic stability score of 55/100 indicates potential vulnerabilities in the local economy, which may impact rent payments and property values.
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