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.
5-bedroom, 7-bathroom house of 400 m², energy rating E. Located on rua das Rolas, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a large, west-facing swimming pool of 84 m², ideal for evening sun exposure, enhancing its appeal as a family residence or holiday home.
The valuation. The asking price of €1,175,000 sits €645,148 (35.4%) below the fair value of €1,820,148, indicating the property is underpriced in the current market.
Fair value modelled at €1,820,148 from 6 comparable sales in the area. Asking €1,175,000 sits €645,148 (35.4%) below — the upside to fair value.
Asking €1,175,000 versus the rua das Rolas area baseline of €1,800,679 (€4,502/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 is below the parish average, reducing 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 €1,800,679, adjusted for condition and micro-location, gives a modelled fair value of €1,820,148 (€4,550/m²), a €645,148 (35.4%) gap versus the €1,175,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Rolas | Subject | €1,175,000 | €2,938 | — | 62 | 66 |
| rua do Lavrador, 2 | Active | €1,100,000 | €4,681 | 59.3% | — | 75 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 6.6% | 74 | 72 |
| Luz · 622709 | Active | €2,450,000 | €7,656 | 160.6% | 80 | 72 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 23.5% | 74 | 75 |
| Median comp | €1,125,000 | €3,713 | 26.4% | 74 | 74 |
Short-term vacation rental The property is ideally situated in Luz, Lagos, where the tourism-dominant economy supports the high demand for short-term vacation rentals. With a fair value significantly higher than the listing price, this investment offers a compelling opportunity for generating a strong rental yield of 4.4% gross. Value-add renovation With a condition rating of 65/100, there is ample opportunity for value-add renovation that could improve the property’s appeal and increase its market value. The gap versus fair value suggests that initial improvements can yield substantial returns in a region where the proximity to the coast drives premium market demand. Long-term rental Given the favorable location in a neighborhood rated 66/100, this property can serve as a reliable long-term rental investment, appealing to families and professionals. The property’s fair value indicates that it is positioned well in the market, attracting quality tenants while maintaining a stable return on investment. Not ideal for student housing The family-centric nature of the Luz neighborhood and the lack of nearby educational institutions suggest that investing in student housing would not be optimal. Instead, strategies focused on family rentals or vacation tourism are more aligned with the asset's attributes. Not ideal for luxury market Despite the proximity to the coast, this property’s fair value indicates it does not cater to the luxury segment, which typically requires higher-end finishes and amenities. Therefore, investors should focus on more approachable market segments that align with the property’s profile.
Tenant instability risk The combined tenant stability score of 65/100 suggests a potential for higher turnover rates, which may lead to increased vacancy and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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