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.
4-bedroom, 3-bathroom house of 275 m², built in 2007. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This villa boasts an outdoor kitchen and barbecue area alongside a saltwater pool, enhancing its appeal for entertaining and relaxation amidst stunning countryside views.
The valuation. The asking price of €895,000 sits below the fair value of €1,049,051, indicating the property is subvalued by €154,051 (14.7%). This suggests a strong investment opportunity relative to market expectations.
Fair value modelled at €1,049,051 from 6 comparable sales in the area. Asking €895,000 sits €154,051 (14.7%) below — the upside to fair value.
Asking €895,000 versus the Luz, Lagos, Faro area baseline of €1,022,097 (€3,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €1,022,097, adjusted for condition and micro-location, gives a modelled fair value of €1,049,051 (€3,815/m²), a €154,051 (14.7%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 1f347e | Subject | €895,000 | €3,255 | — | 75 | 72 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 8.2% | 78 | 69 |
| Barão de São Miguel · 8ee578 | Active | €995,000 | €4,129 | 26.9% | 76 | 68 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 76.5% | 78 | 76 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 30.9% | 74 | 75 |
| Median comp | €987,500 | €3,558 | 9.3% | 77 | 72 |
Long-term rental This property offers an attractive long-term rental opportunity given its fair value exceeds the listing price by 14.7%, indicating a strong potential for appreciation. The gross yield of 3.7% reflects favorable tenant quality in the area, making it an appealing investment for steady cash flow. Short-term vacation rental With its proximity to tourism facilities, this property is well-positioned to attract short-term vacation rentals, capitalizing on the allure of the Algarve region. The gap of 14.7% between the listing price and fair value further supports the likelihood of generating robust rental income. Buy-and-hold The underpriced nature of this property makes it a solid buy-and-hold investment, as it sits significantly below its fair market value of €1,049,051. The combination of a favorable local economy and quality neighborhood amenities suggests that holding this asset could yield significant long-term appreciation. Not ideal for student housing Given the family-oriented nature of this 4-bed property and its location, it is not suitable for student housing, which typically demands different property configurations. The neighborhood dynamics suggest a lack of student-specific amenities that would attract such tenants. Not ideal for luxury market This property does not align with the luxury market expectations, as the ratings indicate a more moderate appeal, with the condition at 78/100. The pricing strategy should focus on the standard market rather than positioning this property as a luxury offering. Not ideal for value-add renovation The property’s current condition, rated at 78/100, does not present a significant value-add opportunity for renovations; hence, it may not warrant extensive investment in upgrades. Additionally, given its listing price already reflects a competitive fair value, any renovations may not yield proportionate increases in value.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of economic downturns negatively impacting rental demand and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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