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.
4-bedroom, 4-bathroom house of 320 m², built in 2015, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Feature: The property offers a low-maintenance lifestyle with smartphone-controlled heating, fenced grounds under CCTV surveillance, and a gently soothing saltwater pool for family enjoyment.
The valuation. The asking price of €2,450,000 is significantly above the fair value of €1,428,991, marking an overvaluation of €1,021,009 or 71.4%. This property is overpriced in the current market context.
Fair value modelled at €1,428,991 from 6 comparable sales in the area. Asking €2,450,000 sits €1,021,009 (71.4%) above — overpriced versus fair value.
Asking €2,450,000 versus the Luz, Lagos, Faro area baseline of €1,397,782 (€4,368/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 €1,397,782, adjusted for condition and micro-location, gives a modelled fair value of €1,428,991 (€4,466/m²), a €1,021,009 (71.4%) gap versus the €2,450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 1907aa | Subject | €2,450,000 | €7,656 | — | 75 | 72 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 25.0% | 78 | 76 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 64.2% | 74 | 72 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 61.0% | 78 | 69 |
| Luz · 62276e | Active | €948,000 | €5,677 | 25.9% | 83 | 73 |
| Median comp | €1,049,000 | €4,332 | 43.4% | 78 | 73 |
Short-term vacation rental Despite the appeal of the Algarve for tourism, the property’s listing price of €2,450,000 is significantly above the fair value of €1,428,991, creating a 71.4% gap that undermines potential returns. With a gross yield of only 1.8%, this investment lacks the financial viability necessary for short-term vacation rentals in a competitive market. Long-term rental The prevailing market dynamics suggest that this property is overpriced at €2,450,000 compared to the fair value of €1,428,991, reflecting a notable disconnect in rental return potential. A gross yield of 1.8% does not support a lucrative long-term rental strategy, especially when considering the neighborhood's overall rating of 72/100. Buy-and-hold At a listing price of €2,450,000, the property is overvalued compared to its fair value of €1,428,991, which limits the upside potential for a buy-and-hold approach. With only a 1.8% gross yield, this strategy is not advisable in the current market, as long-term appreciation may not compensate for the initial overinvestment.
Economic Vulnerability The economic stability score of 65/100 indicates that there may be fluctuations in the local economy that could affect rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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