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 200 m², built in 2000, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa features a dedicated barbecue area for outdoor entertaining and solar energy systems with battery storage, enhancing sustainability and leisure opportunities in the Algarve sun.
The valuation. The asking price of €1,299,000 significantly exceeds the fair value of €772,823 by €526,177 (68.1%), indicating that the property is overpriced. This discrepancy suggests that potential buyers should proceed with caution.
Fair value modelled at €772,823 from 6 comparable sales in the area. Asking €1,299,000 sits €526,177 (68.1%) above — overpriced versus fair value.
Asking €1,299,000 versus the Luz, Lagos, Faro area baseline of €746,735 (€3,734/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 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 €746,735, adjusted for condition and micro-location, gives a modelled fair value of €772,823 (€3,864/m²), a €526,177 (68.1%) gap versus the €1,299,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 5e63ec | Subject | €1,299,000 | €6,495 | — | 84 | 76 |
| Luz · 8750a9 | Active | €895,000 | €3,255 | 49.9% | 78 | 71 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 49.9% | 75 | 72 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 54.0% | 78 | 69 |
| Luz · 622666 | Active | €850,000 | €4,474 | 31.1% | 79 | 74 |
| Median comp | €872,500 | €3,255 | 49.9% | 78 | 72 |
Short-term vacation rental This property, listed at €1,299,000, is overpriced with a fair value of only €772,823, indicating a significant gap of 68.1%. Given the strong tourist demand in the Algarve, the gross yield of 3.2% does not justify the current price point. Buy-and-hold At a listing price of €1,299,000, this property is not an attractive buy-and-hold investment, far exceeding its fair value of €772,823. The estimated yield of 3.2% in a prime tourist area does not offset the excessive valuation, leading to limited long-term financial benefits. Family rental While the property is located in a desirable neighborhood with a good condition rating of 87/100, the current price of €1,299,000 is significantly marked above its fair value of €772,823. This results in a yield of 3.2%, making it a poor choice for a family rental investment strategy given its high cost relative to expected returns.
Tenant Default Risk With a tenant stability score of 70/100, there is a moderate risk of tenant turnover or default, which could affect rental income stability and overall investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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