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 163 m², built in 1973, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This property boasts a charming wood-burning stove and a large rooftop terrace with panoramic views, perfect for outdoor entertaining and enjoying picturesque sunsets. Features Notáveis: Esta propriedade possui uma encantadora lareira a lenha e um grande terraço no telhado com vistas panorâmicas, perfeito para entretenimento ao ar livre e para desfrutar de pôr do sol pitorescos.
The valuation. The asking price of €495,000 is significantly above the calculated fair value of €295,702, presenting a difference of €199,298 (40.3%), indicating that the property is overpriced.
Fair value modelled at €295,702 from the area baseline, adjusted for condition and location. Asking €495,000 sits €199,298 (40.3%) above — overpriced versus fair value.
Asking €495,000 versus the Luz, Lagos, Faro area baseline of €735,293 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 74 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €735,293 + condition +€3,820 + location +€27,496 = modelled fair value of €295,702 (€1,814/m²), a €199,298 (40.3%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 6c7874 | Subject | €495,000 | €3,037 | — | 74 | 76 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 89.2% | 75 | 73 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 89.2% | 78 | 76 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 26.0% | 74 | 75 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 1.6% | 78 | 69 |
| Median comp | €1,087,500 | €4,366 | 43.8% | 77 | 74 |
Short-term vacation rental Short-term vacation rentals in Luz, Lagos could struggle to generate sustainable income, given the current listing price of €495,000, which is significantly above its fair value of €295,702. With a yield of 7% gross, the potential income does not justify the high entry cost, making this property overpriced for the vacation rental market. Buy-and-hold Acquiring this property as a buy-and-hold investment is not advisable, as its significant gap of 40.3% from fair value suggests that the price will not appreciate sufficiently to secure a decent return in the long term. The current pricing at €495,000 does not align with its fair value of €295,702, indicating that it is overpriced for long-term ownership. Value-add renovation Investing in a value-add renovation strategy may not yield the expected returns, as the property is already priced excessively at €495,000 compared to a fair value of €295,702. Although there may be potential for improvement with a condition rating of 77/100, the high acquisition cost makes this opportunity financially unattractive, confirming that the property is overpriced.
Economic Sensitivity Risk The property has an economic stability score of 70, indicating potential vulnerability to economic downturns that could impact rental income and occupancy rates, despite a relatively high tenant stability score of 75.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
