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, 2-bathroom villa of 158 m², built in 1994, energy rating D. Located Luz parish, Lagos municipality, Faro district. This villa features a spacious outdoor terrace ideal for entertainment and is nestled in a prestigious neighborhood renowned for its scenic views and proximity to local attractions.
The valuation. The asking price of €550,000 is substantially below the fair value of €748,987, indicating an underpriced property by €198,987, or 26.6%. This presents a favorable entry point for potential investors.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 46819a | Subject | €550,000 | €3,481 | — | — | 72 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 37.9% | 52 | 70 |
| Luz · 6c7874 | Active | €495,000 | €3,037 | 12.8% | 74 | 76 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 65.0% | 75 | 73 |
| rua do Lavrador, 2 | Active | €1,100,000 | €4,681 | 34.5% | — | 75 |
| Median comp | €797,500 | €4,741 | 36.2% | 74 | 74 |
Short-term vacation rental The 3-bed villa in Luz, Lagos, offers a gross yield of 5.1%, making it an attractive opportunity for short-term vacation rentals in a key tourist region of the Algarve. With a fair market value of €748,987, this property is priced at €550,000, creating a compelling investment with a 26.6% upside potential. Long-term rental Given the vibrant tourist economy surrounding Luz, this property presents a strong option for long-term rental, leveraging the demand from seasonal tenants and locals alike. With a fair value significantly exceeding its listing price, the villa stands to benefit from any appreciation in the Algarve property market. Buy-and-hold Investing in this 3-bed villa as a buy-and-hold asset can capitalize on the projected growth in the real estate sector of Lagos, especially considering the strong tourism influx. The substantial gap to fair value indicates that holding this property may yield significant future returns as the regional market continues to develop.
Economic Volatility Risk The property's economic stability score of 65/100 indicates potential volatility in income and investment returns due to fluctuations in market conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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