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 94 m², built in 1970. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property boasts a charming spiral staircase and a backyard barbecue area, enhancing its appeal for outdoor entertaining and relaxation in the Algarve climate.
The valuation. The asking price of €550,000 far exceeds the fair value of €151,322, indicating an overpriced status with a significant difference of €398,678 (72.5%).
Fair value modelled at €151,322 from the area baseline, adjusted for condition and location. Asking €550,000 sits €398,678 (72.5%) above — overpriced versus fair value.
Asking €550,000 versus the Luz, Lagos, Faro area baseline of €424,034 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 (Condition 68 · Materials 65 · Room dimensions 67). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Luz, Lagos, Faro
Area baseline €424,034 + condition -€13,953 + location +€12,807 = modelled fair value of €151,322 (€1,610/m²), a €398,678 (72.5%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 911743 | Subject | €550,000 | €5,851 | — | 68 | 71 |
| Luz · 483a5f | Active | €455,000 | €4,333 | 25.9% | 80 | 71 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 2.7% | — | 68 |
| Luz · dee3e1 | Active | €415,000 | €4,415 | 24.5% | — | 67 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 18.0% | 52 | 70 |
| Median comp | €467,500 | €4,608 | 21.3% | 66 | 69 |
Short-term vacation rental This property is overpriced at €550,000, representing a significant gap of 72.5% from its fair value of €151,322, which limits profitability in the competitive vacation rental market. The neighborhood's decent score of 71/100 indicates some appeal, but the inflated price hinders strong returns during high tourist season. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable, given its valuation significantly exceeds fair market value and yields only a gross 5%. While the condition score of 66/100 suggests manageable upkeep, the purchase price diminishes potential long-term appreciation and cash flow benefits. Family rental The family rental strategy is unfavorable for this property due to its excessive price of €550,000 compared to its fair value of €151,322, leading to weak yield potential. Furthermore, seasonal employment in the area affects tenant stability, making it less attractive for long-term family rentals. Not ideal for Luxury market opportunities are limited due to the property being overpriced, lacking the quality and amenities typically sought after in that segment. Additionally, the property is not suitable for student housing, as the inflated pricing does not align with the economic realities of typical student budgets.
Economic Sensitivity Given the economic stability score of 65/100 and tenant stability score of 60/100, there is a notable risk that fluctuations in the local economy may lead to decreased rental demand and potential income volatility.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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