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 129 m², built in 1973, energy rating D. Located on rua do Moinho, 13, Luz parish, Lagos municipality, Faro district. Noteworthy feature: The property includes a fantastic rooftop terrace, providing an ideal space for relaxation while enjoying panoramic views of the surrounding Algarve landscape.
The valuation. The asking price of €495,000 sits €74,600 (17.7%) above the fair value of €420,400, indicating that the property is overpriced. Buyers should be cautious when considering this investment opportunity. Buy-to-flip angle. The resale strategy could involve cosmetic upgrades to enhance appeal, potentially yielding a favorable market response in the Algarve's competitive housing market. Aiming for short-term gains through strategic renovations could maximize profitability. Buy-to-let angle. With an estimated gross yield of 4.7%, this property can generate approximately €1,939/month in rental income. The high demand for rentals in the Algarve makes it an attractive buy-and-hold opportunity for investors.
Fair value modelled at €420,400 from 6 comparable sales in the area. Asking €495,000 sits €74,600 (17.7%) above — overpriced versus fair value.
Asking €495,000 versus the rua do Moinho, 13 area baseline of €407,610 (€3,160/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €407,610, adjusted for condition and micro-location, gives a modelled fair value of €420,400 (€3,259/m²), a €74,600 (17.7%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Moinho, 13 | Subject | €495,000 | €3,837 | — | 75 | 73 |
| Luz · 6c7874 | Active | €495,000 | €3,037 | 20.9% | 74 | 76 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 49.7% | 75 | 73 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 49.7% | 78 | 76 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 41.4% | 74 | 75 |
| Median comp | €1,087,500 | €4,391 | 14.4% | 75 | 76 |
Short-term vacation rental The property is not ideal for short-term vacation rental, as it is overpriced by 17.7% compared to its fair value of €420,400. Despite the Algarve's high demand as a tourist area, the 4.7% gross yield does not justify the inflated price. Long-term rental Investing in this property for long-term rental purposes may not be prudent, given that it is overpriced by 17.7% against the fair market value. The current yield of 4.7% fails to compensate for the additional costs associated with managing an overpriced asset. Buy-and-hold This buy-and-hold strategy is compromised due to the property's 17.7% overpricing relative to its fair value. Holding onto an asset with a 4.7% gross yield in a high-demand area is unwise when better opportunities exist at more reasonable price points.
Economic Sensitivity Risk The economic stability score of 65/100 indicates vulnerability to market fluctuations that could negatively impact occupancy rates 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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