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.
3-bedroom, 3-bathroom house of 305 m², energy rating A. Located on rua Hibiscus, Luz parish, Lagos municipality, Faro district. This villa features a striking infinity pool that blends seamlessly with the ocean views, and large glass doors that promote an immersive indoor-outdoor living experience.
The valuation. The asking price of €1,400,000 is set significantly below the fair value of €1,745,691, representing a difference of €345,691 (19.8%). This property appears to be underpriced in the current market, presenting an attractive investment opportunity.
Fair value modelled at €1,745,691 from 6 comparable sales in the area. Asking €1,400,000 sits €345,691 (19.8%) below — the upside to fair value.
Asking €1,400,000 versus the rua Hibiscus area baseline of €1,705,206 (€5,591/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €1,705,206, adjusted for condition and micro-location, gives a modelled fair value of €1,745,691 (€5,724/m²), a €345,691 (19.8%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Hibiscus | Subject | €1,400,000 | €4,590 | — | 85 | 75 |
| Luz · 4a7e47 | Active | €1,750,000 | €7,114 | 55.0% | 80 | 70 |
| rua da Calheta | Active | €1,750,000 | €7,114 | 55.0% | 75 | 76 |
| rua da Calheta | Active | €1,750,000 | €9,777 | 113.0% | 80 | 72 |
| rua Francisco Gavina, 56 | Active | €795,000 | €3,975 | 13.4% | 75 | 72 |
| Median comp | €1,750,000 | €7,114 | 55.0% | 78 | 72 |
Long-term rental The property in Luz, Lagos is well-suited for long-term rental, operating at a gross yield of 2.7%, indicating a steady income source. Given its strong condition rating of 88/100 and support from the expat community, the investment landscape appears favorable despite the competitive market. Short-term vacation rental This 3-bed house presents an attractive short-term vacation rental opportunity, especially in the tourist-centric Algarve region. With a fair value gap of 19.8%, there is potential for profitable returns as tourism continues to thrive, underpinned by a good neighborhood rating of 75/100. Buy-and-hold Investing in this property as part of a buy-and-hold strategy is promising, considering its fair value significantly exceeds the asking price. The combination of a desirable location and solid condition positions this investment to appreciate in value over time, capturing the ongoing demand in the Algarve housing market.
Economic Vulnerability The economic stability score of 65/100 indicates potential risks in market fluctuations that could impact rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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