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 128 m², built in 1973, energy rating D. Located Luz parish, Lagos municipality, Faro district. Unique Investment Opportunity: This property offers a magnificent rooftop terrace with surrounding views, enhancing outdoor living and maximizing the potential for rental income in the Algarve.
The valuation. The asking price of €495,000 is below the fair value of €554,667, creating a gap of €59,667 (10.8%). This property is thus subpriced within the current market context.
Fair value modelled at €554,667 from 5 comparable sales in the area. Asking €495,000 sits €59,667 (10.8%) below — the upside to fair value.
Asking €495,000 versus the Luz, Lagos, Faro area baseline of €542,138 (€4,235/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 €542,138, adjusted for condition and micro-location, gives a modelled fair value of €554,667 (€4,333/m²), a €59,667 (10.8%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 652f69 | Subject | €495,000 | €3,867 | — | 75 | 76 |
| Luz · 6c7874 | Active | €495,000 | €3,037 | 21.5% | 74 | 76 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 48.6% | 75 | 73 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 48.6% | 78 | 76 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 41.9% | 74 | 75 |
| Median comp | €1,087,500 | €4,391 | 13.5% | 75 | 76 |
Short-term vacation rental With a fair value of €554,667, this property priced at €495,000 presents a compelling opportunity for short-term vacation rentals, particularly given the robust tourism industry in the Algarve. The gross yield of 5.2% further enhances its attractiveness for investors seeking consistent cash flow. Long-term rental The property’s current listing price reflects a 10.8% gap below its fair value, making it an advantageous option for long-term rentals in a safe neighborhood with a high tenant quality rating. Coupled with a condition score of 78/100, it should appeal to families and professionals seeking residence in the thriving Luz area. Buy-and-hold Investing in this property for a buy-and-hold strategy is desirable due to its subvalorizada status and potential for appreciation in a region where property values are likely to rise with sustained demand from tourists. Additionally, with a 76/100 neighborhood rating, it offers a balanced quality of life and investment security for long-term hold strategies.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact 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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