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 150 m², built in 1987. Located Luz parish, Lagos municipality, Faro district. This property features a spacious dining room created from a converted garage, enhancing its open-plan living dynamics, while the south-facing terrace offers sun-drenched outdoor relaxation space.
The valuation. The asking price of €545,000 sits €41,013 (8.1%) above the fair value of €503,987, indicating that the property is priced at market value. This suggests that potential buyers should proceed with caution as the property does not present a significant discount.
Fair value modelled at €503,987 from 6 comparable sales in the area. Asking €545,000 sits €41,013 (8.1%) above — overpriced versus fair value.
Asking €545,000 versus the Luz, Lagos, Faro area baseline of €491,166 (€3,274/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €491,166, adjusted for condition and micro-location, gives a modelled fair value of €503,987 (€3,360/m²), a €41,013 (8.1%) gap versus the €545,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 829012 | Subject | €545,000 | €3,633 | — | 72 | 67 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 17.8% | 78 | 69 |
| travessa da Saudade N, 10 | Active | €499,000 | €3,465 | 4.6% | 75 | 69 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 10.4% | 75 | 72 |
| Barão de São Miguel · 8ee578 | Active | €995,000 | €4,129 | 13.6% | 76 | 68 |
| Median comp | €785,000 | €3,360 | 7.5% | 76 | 69 |
Short-term vacation rental This property aligns well with the tourism-driven market of Luz, Lagos, allowing for a solid gross yield of 4.5%. However, with a fair value of €503,987 and a listing price of €545,000, the investment is fairly priced, reducing immediate rental upside potential. Buy-and-hold As a buy-and-hold strategy, this property retains moderate appeal with its fair pricing and potential for gradual appreciation over time. The neighborhood's 67/100 rating and yielding 4.5% gross suggest stability, but its 8.1% gap from fair value indicates limited room for immediate capital growth. Family rental The property could serve as a suitable family rental due to its size and location within Luz, although accommodation is somewhat car-dependent. Given its fair valuation status, prospective investors should approach the family rental market cautiously, as returns may not significantly exceed the current yield of 4.5%.
Economic Instability Risk The economic stability score of 55/100 indicates potential challenges in market conditions that could adversely affect rental income 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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