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 246 m², built in 2003, energy rating A. Located on rua da Calheta, Luz parish, Lagos municipality, Faro district. This property boasts a custom terrace with a retractable deck that unveils a heated pool, providing an exceptional blend of luxury and privacy just steps from the beach.
The valuation. The asking price of €1,750,000 exceeds the fair value of €1,427,209 by €322,791 (22.6%). This property is considered overpriced based on current market assessments.
Fair value modelled at €1,427,209 from 4 comparable sales in the area. Asking €1,750,000 sits €322,791 (22.6%) above — overpriced versus fair value.
Asking €1,750,000 versus the rua da Calheta area baseline of €1,329,839 (€5,406/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting 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 €1,329,839, adjusted for condition and micro-location, gives a modelled fair value of €1,427,209 (€5,802/m²), a €322,791 (22.6%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Calheta | Subject | €1,750,000 | €7,114 | — | 75 | 76 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 37.4% | 80 | 72 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 56.9% | 75 | 65 |
| Luz · 090273 | Active | €1,395,000 | €5,911 | 16.9% | 80 | 73 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 20.0% | — | 68 |
| Median comp | €1,141,500 | €5,802 | 18.4% | 80 | 70 |
Short-term vacation rental The property's yield of 1.7% gross combined with a significant gap of 22.6% from its fair value indicates that it may not be a wise investment for short-term vacation rentals given its current price. The strong tourism appeal of the Algarve area may offer some demand, but the premium pricing undermines potential profitability. Long-term rental While the 80/100 condition and 76/100 neighborhood rating suggest some appeal for long-term rental, the property's 1.7% yield and overpricing at €1,750,000 complicate its attractiveness as an investment. The economic activities in the region are tourism-dependent, which could pose risks to rental stability if market conditions shift. Buy-and-hold Holding onto this property with a significant price gap from its fair value might hinder capital appreciation in the long run, especially with an already low yield of 1.7%. The overpricing at €1,750,000 limits its viability as a buy-and-hold investment in Luz, where reliance on tourism can lead to volatility in property values.
Economic Downturn Impact The scores of 70/100 for both economic and tenant stability indicate a moderate risk of vacancies or reduced rental income during economic downturns.
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