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.
2-bedroom, 1-bathroom villa of 91 m², built in 1990, energy rating E. Located on estrada Luz-Burgau, Luz parish, Lagos municipality, Faro district. The property boasts a private rear terrace with tranquil countryside views and a large shed for exceptional storage, enhancing its outdoor living appeal.
The valuation. The asking price of €475,000 is above the fair value of €407,939 by €67,061 (16.4%). This property is considered overpriced and does not represent a sound investment decision based on its market valuation. Buy-to-flip angle. A buy-to-flip strategy for this villa would hinge on enhancing its appeal through minor renovations, allowing for a potential resale at a profit above the current asking price. Buy-to-let angle. With a gross yield of 4.1% and an estimated rental income of €1,623/month, this property is suitable for investment as a long-term rental or short-term vacation rental in a tourism-driven market.
Fair value modelled at €407,939 from 6 comparable sales in the area. Asking €475,000 sits €67,061 (16.4%) above — overpriced versus fair value.
Asking €475,000 versus the estrada Luz-Burgau area baseline of €399,132 (€4,386/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 €399,132, adjusted for condition and micro-location, gives a modelled fair value of €407,939 (€4,483/m²), a €67,061 (16.4%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada Luz-Burgau | Subject | €475,000 | €5,220 | — | 75 | 74 |
| Luz · 9117dc | Active | €490,000 | €5,632 | 7.9% | 75 | 71 |
| Luz · 46814a | Active | €430,000 | €4,216 | 19.2% | 75 | 73 |
| rua da Praia | Active | €475,000 | €4,750 | 9.0% | 60 | 70 |
| Budens · 1e62cc | Active | €475,000 | €4,750 | 9.0% | 66 | 74 |
| Median comp | €475,000 | €4,750 | 9.0% | 71 | 72 |
Short-term vacation rental The property in Luz, Lagos, is overpriced at €475,000, with a fair value of €407,939 indicating a gap of 16.4%. Given the 4.1% gross yield, potential income from vacation rentals may not sufficiently cover the elevated purchase price in a competitive market. Buy-and-hold Investing in the villa as a buy-and-hold strategy is questionable due to its overvaluation; currently listed at €475,000, which is 16.4% above its fair value of €407,939. This strategy risks lower returns, as the economic dependence on tourism may not sustain property values if demand fluctuates. Family rental Considering the property for family rental purposes is not advisable, as it is overpriced at €475,000 compared to the fair value of €407,939, leading to a 16.4% gap. With a decent neighbourhood rating but a moderate yield of 4.1%, the financial viability may not support long-term tenants effectively.
Economic Vulnerability The economic stability score of 65/100 indicates potential fluctuations in income levels and job security, which could negatively affect tenant retention rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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