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.
7-bedroom, 8-bathroom house of 296 m², built in 2024, energy rating B. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This boutique guest house features five uniquely named en-suite guest rooms, three with private balconies and two deluxe rooms offering spacious terraces with sea views.
The valuation. The asking price of €2,250,000 is significantly higher than the fair value of €1,839,589, representing a premium of €410,411 (22.3%). This indicates the property is overpriced for the current market conditions.
Fair value modelled at €1,839,589 from 6 comparable sales in the area. Asking €2,250,000 sits €410,411 (22.3%) above — overpriced versus fair value.
Asking €2,250,000 versus the Luz, Lagos, Faro area baseline of €1,798,277 (€6,075/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 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 €1,798,277, adjusted for condition and micro-location, gives a modelled fair value of €1,839,589 (€6,215/m²), a €410,411 (22.3%) gap versus the €2,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 3d9a66 | Subject | €2,250,000 | €7,601 | — | 90 | 80 |
| Luz · 483b7c | Active | €1,350,000 | €3,342 | 56.0% | 85 | 70 |
| 911984 | Active | €2,500,000 | €5,952 | 21.7% | 84 | 72 |
| Luz · 622709 | Active | €2,450,000 | €7,656 | 0.7% | 80 | 72 |
| rua da Fortaleza, 28 | Active | €975,000 | €4,333 | 43.0% | 80 | 61 |
| Median comp | €1,900,000 | €5,143 | 32.3% | 82 | 71 |
Short-term vacation rental The property is not suitable for a short-term vacation rental given its overpriced listing at €2,250,000, which is 22.3% above its fair value of €1,839,589. Despite the strong seasonal rental demand in the Algarve, the current price presents a significant barrier to achieving desired rental yields. Long-term rental With a gross yield of 0% and a fair value gap of 22.3%, this property does not provide a viable long-term rental investment opportunity. The overpriced nature of the listing at €2,250,000 compromises its attractiveness as a sustainable rental asset. Buy-and-hold Investing in this 7-bed house for a buy-and-hold strategy is not advisable due to its current market price being 22.3% higher than the assessed fair value. The lack of yield and elevated acquisition cost undermine its potential for long-term capital appreciation in the competitive Luz neighborhood.
Economic Volatility Risk With an economic stability score of 70/100, there is a moderate risk of economic downturns affecting rental income and property 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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