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 190 m², built in 2003, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property boasts high-quality materials and finishes throughout, with a balcony that provides stunning sea views, enhancing its appeal as a vacation or investment home.
The valuation. The asking price of €850,000 is slightly below the fair value of €876,341, positioning it as a fair opportunity in the current market. The difference of €26,341 reflects a 3.0% discount, appealing for prospective buyers.
Fair value modelled at €876,341 from 6 comparable sales in the area. Asking €850,000 sits €26,341 (3.0%) below — the upside to fair value.
Asking €850,000 versus the Luz, Lagos, Faro area baseline of €854,686 (€4,498/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €854,686, adjusted for condition and micro-location, gives a modelled fair value of €876,341 (€4,612/m²), a €26,341 (3.0%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 622666 | Subject | €850,000 | €4,474 | — | 79 | 74 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 28.4% | 78 | 76 |
| Luz · 4d45f9 | Active | €1,195,000 | €5,745 | 28.4% | 75 | 73 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 33.2% | 78 | 69 |
| rua do Moinho, 13 | Active | €495,000 | €3,837 | 14.2% | 75 | 73 |
| Median comp | €935,000 | €4,791 | 7.1% | 77 | 73 |
Short-term vacation rental The property's strong yield of 4.1% gross coupled with its proximity to attractive beaches aligns well with the continued demand for short-term vacation rentals in the Luz area, especially during peak tourist seasons. However, the fair value assessment suggests that the property is priced accurately, reflecting its potential without room for significant upside. Long-term rental With a solid gross yield of 4.1% and a favorable condition score of 82/100, this property offers a consistent income stream suitable for long-term rental strategies. Given its fair value status, investors should approach this opportunity with caution, recognizing that it does not present substantial room for negotiation or value increase. Buy-and-hold The buy-and-hold strategy here may offer steady returns given the rental yield and the desirable location of the property, which should maintain attractiveness over time. Although the property's current pricing aligns with fair market value, prospective investors should consider the limited upside potential before committing to this strategy.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact tenant retention and rental income. The tenant stability score of 75/100 suggests decent retention rates, but combined, these scores reveal a potential for fluctuating demand affecting property performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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