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.
4-bedroom, 2-bathroom villa of 146 m², built in 1987. Located Luz parish, Lagos municipality, Faro district. Noteworthy Feature: The villa includes a converted garage that now serves as a spacious living and dining area, enhancing the property's social dynamics and functionality.
The valuation. The asking price of €599,000 is significantly above the fair value of €261,634, indicating an overvaluation of €337,366 (56.3%). This property cannot be considered a deal based on its current pricing.
Fair value modelled at €261,634 from the area baseline, adjusted for condition and location. Asking €599,000 sits €337,366 (56.3%) above — overpriced versus fair value.
Asking €599,000 versus the Luz, Lagos, Faro area baseline of €591,300 (€4,050/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €591,300 + condition +€1,141 + location +€23,681 = modelled fair value of €261,634 (€1,792/m²), a €337,366 (56.3%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · f36036 | Subject | €599,000 | €4,103 | — | 72 | 75 |
| Luz · 96c112 | Active | €790,000 | €5,163 | 25.9% | 75 | 71 |
| Luz · b7b54b | Active | €450,000 | €4,286 | 4.5% | 80 | 66 |
| rua das Acácias | Active | €795,000 | €4,789 | 16.7% | 82 | 69 |
| rua Doutora Raul Baptista Horta | Active | €825,000 | €4,508 | 9.9% | 73 | 65 |
| Median comp | €792,500 | €4,649 | 13.3% | 78 | 68 |
Short-term vacation rental The villa's high listing price of €599,000 represents a significant gap of 56.3% from its fair value, suggesting the investment is overpriced. With a gross yield of only 3.9%, the expected financial performance does not justify the premium on this property in a tourist-driven market. Buy-and-hold Investing in this property for the long term seems unattractive due to its overpriced listing at €599,000, far exceeding the fair value of €261,634. The combination of a moderate yield of 3.9% and the high price point limits the potential for profitable appreciation in a market primarily focused on tourism. Long-term rental The current valuation of €599,000 places this villa in the overpriced category against its fair value of €261,634, limiting its appeal for long-term rental strategies. Moreover, the yield of 3.9% does not adequately compensate for the substantial financial outlay, particularly in a neighborhood where amenities cater more to tourists than to long-term residents.
Market Vulnerability The combined economic stability score of 75/100 and tenant stability score of 70/100 indicates a potential risk due to fluctuations in market conditions that could lead to decreased demand or unstable rental income.
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