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 200 m², energy rating B. Located on rua Francisco Gavina, 56, Luz parish, Lagos municipality, Faro district. This property boasts a continuous balcony with sea views, and a private garden includes a producing avocado tree, enhancing its outdoor living experience.
The valuation. The asking price of €795,000 is significantly below the fair value of €1,102,626, indicating a present value discrepancy of €307,626 (27.9%). Verdict: underpriced.
Fair value modelled at €1,102,626 from 6 comparable sales in the area. Asking €795,000 sits €307,626 (27.9%) below — the upside to fair value.
Asking €795,000 versus the rua Francisco Gavina, 56 area baseline of €1,082,394 (€5,412/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 €1,082,394, adjusted for condition and micro-location, gives a modelled fair value of €1,102,626 (€5,513/m²), a €307,626 (27.9%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Francisco Gavina, 56 | Subject | €795,000 | €3,975 | — | 75 | 72 |
| rua da Calheta | Active | €1,750,000 | €7,114 | 79.0% | 75 | 76 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 79.0% | 80 | 70 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 146.0% | 80 | 72 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 22.9% | 75 | 65 |
| Median comp | €1,750,000 | €7,114 | 79.0% | 78 | 71 |
Short-term vacation rental This property is strategically located in Algarve, making it ideal for short-term vacation rentals, especially given the high demand in the area. With a fair value gap of 27.9%, investors can benefit from significant returns exceeding the gross yield of 4%. Buy-and-hold Investing in this property for long-term holding is a favorable strategy, supported by its appealing location and the current underpricing compared to fair value. With a gross yield of 4% and potential property appreciation, this could enhance overall investment returns over time. Long-term rental The property’s current listing makes it a solid choice for long-term rental, as it offers a fair rental yield within a desirable neighborhood. Its condition rating of 79/100 indicates that it is well-maintained, further attracting reliable tenants over the rental period.
Potential Economic Downturn A score of 65/100 in economic stability indicates a moderate risk of economic downturn, which could affect tenant retention 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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