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, 3-bathroom house of 275 m², built in 1986, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This villa includes a spacious independent structure that can be converted into a garage and is accompanied by a covered outdoor kitchen, ideal for entertaining. Location: The property is located just a short drive from Burgau beach and the historic center of Lagos, enhancing its appeal for both relaxation and convenience.
The valuation. The asking price of €895,000 sits €335,263 (27.3%) below the fair value of €1,230,263. This property is considered underpriced and presents a strong opportunity for investors.
Fair value modelled at €1,230,263 from 5 comparable sales in the area. Asking €895,000 sits €335,263 (27.3%) below — the upside to fair value.
Asking €895,000 versus the Luz, Lagos, Faro area baseline of €1,197,557 (€4,355/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €1,197,557, adjusted for condition and micro-location, gives a modelled fair value of €1,230,263 (€4,474/m²), a €335,263 (27.3%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 8750a9 | Subject | €895,000 | €3,255 | — | 78 | 71 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 8.2% | 78 | 69 |
| Barão de São Miguel · 8ee578 | Active | €995,000 | €4,129 | 26.9% | 76 | 68 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 76.5% | 78 | 76 |
| Luz · 622666 | Active | €850,000 | €4,474 | 37.5% | 79 | 74 |
| Median comp | €922,500 | €4,302 | 32.2% | 78 | 72 |
Short-term vacation rental The property in Luz, Lagos is well-positioned for short-term vacation rentals, given Algarve's standing as a prime tourist destination and the attractive yield of 3.9%. With a fair value significantly above the listing price, this investment capitalizes on the area's economic stability and demand for vacation homes. Long-term rental This property presents a strong opportunity in the long-term rental market due to its appealing location within a low-crime area and the solid condition rating of 84/100. The competitive yield of 3.9% and a fair value that is 27.3% above the listing price support the stability of investment returns over time. Buy-and-hold Investing in this 4-bed house as a buy-and-hold property is strategically sound, reflecting the property’s fair value significantly exceeding its current price. The long-term demand for housing in the Algarve region reinforces this strategy, ensuring potential appreciation and rental income stability. Not ideal for: Given the property’s characteristics, it is not ideal for student housing or targeting the luxury market, nor does it seek value-add renovations, as these strategies do not align with the intrinsic value and market demand dynamics in this locale.
Moderate Economic Instability The economic stability score of 65/100 suggests potential fluctuations in the local economy that could affect rental income and property demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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