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, 6-bathroom house of 404 m², built in 2023, energy rating A. Located Luz parish, Lagos municipality, Faro district. This property features a 60 m² heated pool and expansive gardens, creating an ideal outdoor retreat for year-round enjoyment.
The valuation. The asking price of €1,350,000 exceeds the fair value of €758,211 by €591,789 (43.8%), indicating the property is overpriced. Buyers should approach this investment with caution, assessing the market for viable alternatives. Buy-to-flip angle. Given the property's high-quality finishes, a buy-to-flip strategy could capitalize on aesthetic appeal, yet the current asking price limits profit potential. A significant markup would be required to achieve attractive returns on resale. Buy-to-let angle. With a gross yield of 0%, the property may not be an ideal candidate for long-term rental unless the price adjusts. The proximity to tourist spots in Algarve could attract short-term vacation rentals if strategically managed.
Fair value modelled at €758,211 from the area baseline, adjusted for condition and location. Asking €1,350,000 sits €591,789 (43.8%) above — overpriced versus fair value.
Asking €1,350,000 versus the Luz, Lagos, Faro area baseline of €1,822,444 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 85 · Materials 87 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €1,822,444 + condition +€50,500 + location +€52,423 = modelled fair value of €758,211 (€1,877/m²), a €591,789 (43.8%) gap versus the €1,350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 483b7c | Subject | €1,350,000 | €3,342 | — | 85 | 70 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 76.9% | 80 | 73 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 112.9% | 80 | 70 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 8.3% | 75 | 65 |
| Bensafrim e Barão de São João · 9568c7 | Active | €1,750,000 | €9,211 | 175.6% | 82 | 61 |
| Median comp | €1,572,500 | €6,513 | 94.9% | 80 | 68 |
Short-term vacation rental The property at €1,350,000 is priced 43.8% higher than its fair value of €758,211, making it an overpriced investment for a short-term vacation rental. With a gross yield of 0%, the expected rental income may not justify this elevated purchase cost. Long-term rental At a listing price significantly above its fair value, this 4-bed house presents limited appeal for long-term rental opportunities, as evidenced by the 0% gross yield. The property's condition and relatively decent neighbourhood score do not compensate for the substantial overpricing. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unfeasible when it is overvalued at €1,350,000 versus a fair value of €758,211. The absence of financial returns, highlighted by the 0% gross yield, raises concerns about long-term profitability in a tourism-driven economy.
Economic Vulnerability The economic stability score of 60/100 suggests a heightened risk of fluctuations that may impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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