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, 5-bathroom house of 470 m², built in 2007, energy rating A. Located Luz parish, Lagos municipality, Faro district. This property features a luxurious fully-equipped kitchen designed for entertaining, alongside meticulously maintained gardens that enhance the serene outdoor living experience.
The valuation. The asking price of €1,495,000 sits significantly below the fair value of €3,257,164, indicating an undervalued property by €1,762,164 (54.1%). Buy-to-flip angle. A resale strategy could capitalize on the property’s condition and location, potentially yielding a profit through targeted renovations aimed at attracting high-end buyers. Buy-to-let angle. A rental income strategy could leverage the tourist-oriented area, targeting both short-term vacation rentals and long-term tenants during peak seasons to generate steady cash flow.
Fair value modelled at €3,257,164 from 6 comparable sales in the area. Asking €1,495,000 sits €1,762,164 (54.1%) below — the upside to fair value.
Asking €1,495,000 versus the Luz, Lagos, Faro area baseline of €3,196,645 (€6,801/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €3,196,645, adjusted for condition and micro-location, gives a modelled fair value of €3,257,164 (€6,930/m²), a €1,762,164 (54.1%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · efdb0d | Subject | €1,495,000 | €3,181 | — | 85 | 71 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 125.1% | 78 | 72 |
| rua Baden Powell, 8 | Active | €1,625,000 | €7,159 | 125.1% | 78 | 64 |
| parque do Moínho | Active | €2,800,000 | €6,167 | 93.9% | 86 | 73 |
| Luz · 483b7c | Active | €1,350,000 | €3,342 | 5.1% | 85 | 70 |
| Median comp | €1,625,000 | €6,663 | 109.5% | 82 | 71 |
Short-term vacation rental This property is strategically positioned in a tourist-oriented area of the Algarve, making it an appealing option for short-term vacation rentals. With a significant fair value gap of 54.1%, there is potential for exceptional returns in a market that thrives on seasonal tourism. Long-term rental The property’s condition score of 86/100 indicates it is well-maintained and attractive for long-term tenants, especially in a market with seasonal employment driven by tourism. Given its current listing price and fair value assessment, it presents an opportunity to secure a property that can command competitive rental yields over time. Buy-and-hold Investing in this property fits a buy-and-hold strategy as it is located in a desirable tourist area, which can ensure consistent appreciation of asset value. The significant gap from its fair value suggests built-in equity that can be realized through lengthened holding periods, providing leverage for future investments.
Economic Vulnerability The property faces a risk due to an economic stability score of 65/100, indicating potential economic challenges that could impact 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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