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 167 m², energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This property boasts a large terrace with stunning sea views and a beautifully maintained garden around the pool, enhancing outdoor luxury and leisure options.**
The valuation. The asking price of €948,000 is significantly above the fair value of €613,030, indicating the property is overpriced by €334,970, or 54.6%. This discrepancy suggests a careful evaluation of appreciation potential is necessary.
Fair value modelled at €613,030 from 6 comparable sales in the area. Asking €948,000 sits €334,970 (54.6%) above — overpriced versus fair value.
Asking €948,000 versus the Luz, Lagos, Faro area baseline of €594,931 (€3,562/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €594,931, adjusted for condition and micro-location, gives a modelled fair value of €613,030 (€3,671/m²), a €334,970 (54.6%) gap versus the €948,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 62276e | Subject | €948,000 | €5,677 | — | 83 | 73 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 1.2% | 78 | 76 |
| Luz · 622666 | Active | €850,000 | €4,474 | 21.2% | 79 | 74 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 42.7% | 75 | 72 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 47.4% | 78 | 69 |
| Median comp | €872,500 | €3,865 | 31.9% | 78 | 73 |
Short-term vacation rental Given the current valuation of €948,000, the property presents a significant gap of 54.6% compared to its fair value of €613,030, indicating it is overpriced for short-term rental potential. The 2.8% gross yield does not justify the asking price, especially in an area with seasonal tenant stability issues. Long-term rental With the property priced at €948,000 against a fair value of €613,030, it remains overpriced and may not attract tenants seeking affordability in long-term rentals. The 2.8% yield combined with the less-than-ideal economic outlook for steady employment in the area further complicates the investment case. Buy-and-hold At €948,000, the property exceeds its fair value of €613,030, categorizing it as overpriced for a buy-and-hold investment strategy. Despite the reasonable condition score of 81/100, the prevailing yield of 2.8% suggests that long-term returns may not be commensurate with the initial investment cost. Not ideal for: Student housing, Luxury market Student housing is not ideal due to the property's price point and the potential lack of stable demand throughout the year. The luxury market is similarly unappealing, as the high price tag does not align with the area’s economic realities and tenant quality expectations.
Tenant turnover risk Elevated tenant turnover is a concern with a tenant stability score of 70/100, indicating potential volatility in rental income that could affect overall profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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