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, 2-bathroom house of 145 m², built in 2007, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This villa features a sunroom with a barbecue area, enhancing outdoor entertaining possibilities, along with a spacious garage providing convenient interior access to the home.
The valuation. The asking price of €450,000 is significantly below the fair value of €659,804, representing a discount of €209,804 (31.8%). This property is clearly underpriced and presents an attractive buying opportunity.
Fair value modelled at €659,804 from 6 comparable sales in the area. Asking €450,000 sits €209,804 (31.8%) below — the upside to fair value.
Asking €450,000 versus the Luz, Lagos, Faro area baseline of €654,065 (€4,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €654,065, adjusted for condition and micro-location, gives a modelled fair value of €659,804 (€4,550/m²), a €209,804 (31.8%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · cd0950 | Subject | €450,000 | €3,103 | — | 60 | 71 |
| Luz · 46819a | Active | €550,000 | €3,481 | 12.2% | — | 72 |
| rua Hortas da Ribeira, 14 | Active | €800,000 | €4,420 | 42.4% | 70 | 69 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 54.7% | 52 | 70 |
| rua do Lavrador, 2 | Active | €1,100,000 | €4,681 | 50.8% | — | 75 |
| Median comp | €675,000 | €4,551 | 46.6% | 61 | 71 |
Short-term vacation rental The property is ideally located in a tourist-friendly area of Algarve, making it attractive for short-term vacation rental opportunities. With a gross yield of 5.6% and a substantial fair value gap of 31.8%, this investment can capitalize on the seasonal influx of visitors while presenting a significant upside potential. Buy-and-hold Investing in this property as a buy-and-hold presents a compelling value opportunity, given its fair value of €659,804 compared to the listing price of €450,000. With the neighborhood's rating at 71/100, the long-term demand for housing in this area aligns well with solid investment fundamentals. Long-term rental The house offers an attractive option for long-term rental, supported by its advantageous location in a strong neighborhood with a score of 71/100. The 5.6% gross yield reflects favorable market conditions, especially considering the property's valuation gap of 31.8%, signaling robust rental demand within the region.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of downturns that could affect tenant retention 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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