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 208 m², built in 2013, energy rating C. Located Luz parish, Lagos municipality, Faro district. This property boasts a scenic sea view and a spacious 3000m² land area, enhancing its appeal as a tranquil retreat in Luz, Lagos.
The valuation. The asking price of €1,195,000 exceeds the fair value of €376,215 by €818,785 (68.5%). This property is overpriced, making it a less appealing investment option.
Fair value modelled at €376,215 from the area baseline, adjusted for condition and location. Asking €1,195,000 sits €818,785 (68.5%) above — overpriced versus fair value.
Asking €1,195,000 versus the Luz, Lagos, Faro area baseline of €938,288 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €938,288 + condition +€7,800 + location +€31,039 = modelled fair value of €376,215 (€1,809/m²), a €818,785 (68.5%) gap versus the €1,195,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 4d45f9 | Subject | €1,195,000 | €5,745 | — | 75 | 73 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 60.9% | 74 | 75 |
| Luz · 96c112 | Active | €790,000 | €5,163 | 10.1% | 75 | 71 |
| rua das Acácias | Active | €795,000 | €4,789 | 16.6% | 82 | 69 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 52.2% | 74 | 72 |
| Median comp | €887,500 | €3,767 | 34.4% | 75 | 72 |
Short-term vacation rental The property’s pricing at €1,195,000 suggests a significant overvaluation considering that its fair value is only €376,215, indicating that it is overpriced by 68.5%. Given the high seasonal tourism impact in the Algarve region, this strategy may struggle to generate sufficient returns against such a steep entry price, especially with a low gross yield of 3%. Long-term rental With a fair value of €376,215, the asking price of €1,195,000 positions this property as overpriced by 68.5%, which raises concerns over future rental income potential. While the neighborhood offers decent amenities and tenant quality, the current gross yield of 3% is insufficient to justify the investment at this elevated price point. Buy-and-hold At €1,195,000, the property is overpriced by 68.5% when contrasted with its fair value of €376,215, making it a less attractive long-term investment despite its location benefits. The modest gross yield of 3% along with potential appreciation risks further question the viability of a buy-and-hold strategy at this asking price.
Economic Sensitivity Risk The economic stability score of 65/100 indicates that the region may experience fluctuations that could adversely affect rental income and property value.
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