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 das Cotovias, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa boasts an expansive terrace perfect for alfresco dining while enjoying breathtaking ocean sunsets, and its meticulously landscaped garden enhances the allure of outdoor living in a tranquil setting.
The valuation. The asking price of €1,500,000 is situated €213,759 (12.5%) below the fair value of €1,713,759. This positions the property as fairly valued in the current market context.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Cotovias | Subject | €1,500,000 | €4,918 | — | — | 73 |
| jardim na Praia da Luz | Active | €775,000 | €3,063 | 37.7% | 75 | 65 |
| rua Nelson Mandela, 6 | Active | €888,000 | €5,692 | 15.7% | — | 68 |
| largo da República, 79 | Active | €8,000,000 | €16,000 | 225.3% | — | 70 |
| rua da Calheta | Active | €1,750,000 | €7,114 | 44.6% | 75 | 76 |
| Median comp | €1,319,000 | €6,403 | 30.2% | 75 | 69 |
Short-term vacation rental The property in Luz, Lagos, with a gross yield of 2.5%, may not maximize rental income potential given the competitive nature of short-term rentals in the Algarve area. While demand from tourists exists, the property sits fairly priced at €1,500,000 compared to a fair value of €1,713,759, indicating limited upside for short-term rental investments. Long-term rental As a long-term rental investment, this property is relatively fairly priced, making it a suitable option for stable rental income with a yield of 2.5%. However, substantial seasonal employment fluctuations in the Algarve might affect tenant stability, making it necessary to assess ongoing demand and tenant quality in the area. Buy-and-hold With a fair valuation at €1,500,000, the buy-and-hold strategy may prove viable, yet the economic landscape of the Algarve suggests potential risks with property appreciation under current market conditions. Ultimately, while the property is acceptable at its fair price, investors should remain cautious about long-term market fluctuations and tenant demand dynamics.
Economic Instability Risk The economic stability score of 65 indicates potential vulnerabilities in the local economy, which may lead to fluctuations in rental demand and property value.
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