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.
5-bedroom, 3-bathroom house of 181 m², built in 1975, energy rating D. Located on rua Hortas da Ribeira, 14, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes extensive landscaped areas with fruit trees and a treehouse, enhancing outdoor living and leisure opportunities. Investment Potential: Its divisibility into three independent apartments offers excellent rental income opportunities.
The valuation. The asking price of €800,000 is significantly above the fair value of €307,693, representing an overvaluation of €492,307 (61.5%). This price discrepancy raises concerns regarding the property's investment potential.
Fair value modelled at €307,693 from the area baseline, adjusted for condition and location. Asking €800,000 sits €492,307 (61.5%) above — overpriced versus fair value.
Asking €800,000 versus the rua Hortas da Ribeira, 14 area baseline of €816,491 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 74). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 69/100 (Housing Market 80 · Amenities 60 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Hortas da Ribeira, 14
Area baseline €816,491 + condition -€8,202 + location +€22,312 = modelled fair value of €307,693 (€1,700/m²), a €492,307 (61.5%) gap versus the €800,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Hortas da Ribeira, 14 | Subject | €800,000 | €4,420 | — | 70 | 69 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 37.9% | 74 | 72 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 49.1% | 74 | 75 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 46.5% | 77 | 66 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 30.0% | 75 | 73 |
| Median comp | €1,172,500 | €4,245 | 4.0% | 75 | 73 |
Short-term vacation rental The property’s listing price is significantly above its fair value, making it a less attractive option for short-term vacation rental investors given the 61.5% gap. While the area near the Algarve coast is appealing to tourists, the anticipated yield of 5.1% does not justify the high entry cost. Buy-and-hold Investing in this property for a buy-and-hold strategy is unwise due to its high price point compared to fair value, which diminishes long-term capital appreciation potential. With a fair value of €307,693, the home is likely to underperform in the context of return on investment over time. Family rental This property is overpriced at €800,000, resulting in a less favorable scenario for family rentals where demand may not match such a high price point. The inapt valuation suggests that rental income may not sufficiently cover costs, leading to potential long-term financial strain for landlords.
Economic Vulnerability The economic stability score of 55/100 indicates potential susceptibility to market downturns, which may negatively impact rental income and property value.**
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