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, 5-bathroom house of 320 m², built in 2016, energy rating C. Located Luz parish, Lagos municipality, Faro district. This villa's garage features a multifunctional space adaptable for a gym or cinema, along with underfloor heating and sea views complementing its luxurious outdoor amenities.
The valuation. The asking price of €2,450,000 exceeds the fair value of €1,140,262 by €1,309,738 (114.9%), leading to the judgment that this property is overpriced. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the luxury features and strong tourist appeal, aiming for a quick resale at a higher price within the thriving Algarve market. Buy-to-let angle. With an estimated gross yield of 1.5% (~€3,062/month), this property can serve as a short-term vacation rental, leveraging its location and high-quality finishes to attract renters seeking luxury accommodations.
Fair value modelled at €1,140,262 from 6 comparable sales in the area. Asking €2,450,000 sits €1,309,738 (114.9%) above — overpriced versus fair value.
Asking €2,450,000 versus the Luz, Lagos, Faro area baseline of €1,104,039 (€3,450/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 €1,104,039, adjusted for condition and micro-location, gives a modelled fair value of €1,140,262 (€3,563/m²), a €1,309,738 (114.9%) gap versus the €2,450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 622709 | Subject | €2,450,000 | €7,656 | — | 80 | 72 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 70.6% | 74 | 75 |
| rua da Praia | Active | €999,000 | €3,872 | 49.4% | 78 | 80 |
| Luz · 4a7ccd | Active | €1,425,000 | €6,477 | 15.4% | 77 | 66 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 25.0% | 78 | 76 |
| Median comp | €1,097,000 | €4,809 | 37.2% | 78 | 76 |
Short-term vacation rental The property is overpriced, with a significant gap of 114.9% compared to fair value. While the attractive Algarve location may entice tourists, the 1.5% gross yield suggests limited financial viability for short-term vacation rentals. Buy-and-hold With a fair value of €1,140,262 compared to the listing price of €2,450,000, this property is overpriced by over 114%. Although the neighborhood benefits from tourism appeal, the yield of 1.5% indicates that long-term appreciation is unlikely to cover the current overvaluation. Family rental The listing price exceeds fair value by 114.9%, rendering the property overpriced for family rental purposes. While the 82/100 condition score is promising, the low yield of 1.5% raises concerns about the potential for generating viable cash flow for families looking to rent. Not ideal for: Student housing, Luxury market, Industrial property.
Economic Vulnerability The economic stability score of 65 indicates potential risks in market fluctuations that could affect property demand and value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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