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 house of 246 m², built in 2003, energy rating A. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa includes an outdoor sauna and a versatile space beneath the terrace, ideal for customization as a games room or fitness area, enhancing overall lifestyle options.
The valuation. The asking price of €1,750,000 is significantly above the fair value of €458,224, resulting in an overpriced property by €1,291,776 (73.8%).
Fair value modelled at €458,224 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €1,291,776 (73.8%) above — overpriced versus fair value.
Asking €1,750,000 versus the Luz, Lagos, Faro area baseline of €1,145,376 (€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 70/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €1,145,376 + condition +€27,291 + location +€31,921 = modelled fair value of €458,224 (€1,863/m²), a €1,291,776 (73.8%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 4a7e47 | Subject | €1,750,000 | €7,114 | — | 80 | 70 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 37.4% | 80 | 72 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 56.9% | 75 | 65 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 16.9% | 80 | 73 |
| rua da Calheta | Active | €1,750,000 | €7,114 | 0% | — | 80 |
| Median comp | €1,572,500 | €6,513 | 8.5% | 80 | 73 |
Short-term vacation rental The property is overpriced at €1,750,000, significantly exceeding its fair value of €458,224 by 73.8%, leading to an unattractive yield of 1.8%. Given the region's reliance on tourism, this investment lacks the potential for a favorable return. Long-term rental At €1,750,000, this property is overpriced compared to its fair value of €458,224, indicating that the projected long-term rental income would be insufficient to justify the investment with a mere yield of 1.8%. The average quality of schools and amenities in the area further discourage long-term rental viability. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable, as it is priced at €1,750,000—73.8% above its fair value of €458,224. With a low yield of 1.8% and an average neighborhood rating, future appreciation does not seem promising.
Economic Vulnerability The economic stability score of 60 indicates a moderate risk of economic downturn affecting property value, while the tenant stability score of 70 suggests that while tenants are relatively stable, they may be vulnerable to economic fluctuations that could impact rental income.
