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, 4-bathroom villa of 224 m², built in 2002, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa includes two sunlit balconies that enhance outdoor living, and a spacious garden surrounding the swimming pool, perfect for relaxation and entertainment in a private setting.
The valuation. The asking price of €785,000 is significantly below the fair value of €895,674, presenting a discount of €110,674 (12.4%). This property is priced attractively for potential investors.
Fair value modelled at €895,674 from 6 comparable sales in the area. Asking €785,000 sits €110,674 (12.4%) below — the upside to fair value.
Asking €785,000 versus the Luz, Lagos, Faro area baseline of €827,987 (€3,696/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €827,987, adjusted for condition and micro-location, gives a modelled fair value of €895,674 (€3,999/m²), a €110,674 (12.4%) gap versus the €785,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · b32764 | Subject | €785,000 | €3,504 | — | 70 | 73 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 35.9% | 74 | 75 |
| rua da Praia | Active | €999,000 | €3,872 | 10.5% | 78 | 80 |
| Barão de São Miguel · 8ee4db | Active | €950,000 | €5,864 | 67.3% | 75 | 74 |
| Barão de São Miguel · 8ee578 | Active | €995,000 | €4,129 | 17.8% | 76 | 68 |
| Median comp | €987,500 | €4,001 | 14.2% | 76 | 75 |
Short-term vacation rental The 3-bed villa in Luz, Lagos presents an attractive opportunity for short-term vacation rentals, benefiting from its location in a popular Algarve tourist area where tourism bolsters the local economy. Given the 3.9% gross yield and the fair value assessment indicating a 12.4% gap, this property is well-placed to generate lucrative rental income. Buy-and-hold With a fair value of €895,674 compared to the listing price of €785,000, this property reflects a value gap that suggests strong potential for long-term appreciation, particularly in a thriving market influenced by continuous tourism. The current condition rating of 73/100 supports a solid investment for those looking to hold for future value growth. Family rental The villa’s location and neighborhood ratings of 73/100 suggest it is well-suited for family rentals, making it an appealing option for tenants seeking quality housing in a desirable area. Although the villa is not ideal for student housing or the luxury market, its overall amenities cater well to long-term family rental needs, particularly in a community vibrant with tourist activity.
Economic Vulnerability The property faces risks due to the economic stability score of 65/100, indicating potential fluctuations in demand 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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