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.
0-bedroom, 0-bathroom house of 76 m², built in 1987. Located Luz parish, Lagos municipality, Faro district. Unique Selling Point: This property features a spacious outdoor kitchen and dining area on the covered terrace, perfect for entertaining while enjoying panoramic views of the surrounding countryside.
The valuation. The asking price of €675,000 is significantly above the fair value of €133,198, representing an excess of €541,802, or 80.3%. Verdict: overpriced.
Fair value modelled at €133,198 from the area baseline, adjusted for condition and location. Asking €675,000 sits €541,802 (80.3%) above — overpriced versus fair value.
Asking €675,000 versus the Luz, Lagos, Faro area baseline of €342,836 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 70 · Materials 82 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €342,836 + condition +€1,544 + location +€8,382 = modelled fair value of €133,198 (€1,753/m²), a €541,802 (80.3%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 4a7ed4 | Subject | €675,000 | €8,882 | — | 70 | 67 |
| rua das Bicas | Active | €299,000 | €3,646 | 58.9% | 72 | 61 |
| rua da Praia | Active | €475,000 | €4,750 | 46.5% | 60 | 70 |
| Budens · 1e62cc | Active | €475,000 | €4,750 | 46.5% | 66 | 74 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 35.9% | — | 68 |
| Median comp | €475,000 | €4,750 | 46.5% | 66 | 69 |
Short-term vacation rental The property is overpriced at €675,000 compared to a fair value of €133,198, resulting in a staggering 80.3% gap. With a low yield of 2.3%, it does not capitalize on the seasonal tourism demand effectively. Long-term rental Given the significant 80.3% gap between listing price and fair value, this property does not make financial sense for long-term rental investment. The low yield of 2.3% further undermines its potential to generate steady income in a tourist-focused market where permanent residency is less robust. Buy-and-hold As this property is overpriced by 80.3%, it poses a risk for a buy-and-hold strategy in an area with fluctuating tourism-driven demand. The insufficient gross yield of 2.3% signals that holding this asset would likely not yield favorable returns over time.
Economic instability risk The economic stability score of 55/100 indicates potential vulnerabilities in the local economy that could affect property values and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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