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, 4-bathroom villa of 268 m², built in 1998, energy rating E. Located on urbanização Porto Dona Maria, Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa boasts a poolside terrace with unobstructed sea views and is located within a few minutes' walk to both the beach and premier golf courses.
The valuation. The asking price sits at €1,062,500, which is €52,634 or 5.2% above the fair value of €1,009,866. The property is deemed fairly priced, making it a viable investment opportunity.
Fair value modelled at €1,009,866 from 6 comparable sales in the area. Asking €1,062,500 sits €52,634 (5.2%) above — overpriced versus fair value.
Asking €1,062,500 versus the urbanização Porto Dona Maria area baseline of €992,173 (€3,702/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 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 €992,173, adjusted for condition and micro-location, gives a modelled fair value of €1,009,866 (€3,768/m²), a €52,634 (5.2%) gap versus the €1,062,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Porto Dona Maria | Subject | €1,062,500 | €3,965 | — | 72 | 72 |
| rua do Lavrador, 2 | Active | €1,100,000 | €4,681 | 18.1% | — | 75 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 43.3% | 74 | 75 |
| rua Hortas da Ribeira, 14 | Active | €800,000 | €4,420 | 11.5% | 70 | 69 |
| Luz · 1908a2 | Active | €775,000 | €4,282 | 8.0% | 75 | 71 |
| Median comp | €890,000 | €4,351 | 9.7% | 74 | 73 |
Long-term rental The property offers a reasonable gross yield of 3.2% in a tourist-friendly Algarve region, but its condition score of 71/100 suggests potential maintenance issues. This makes it a stable choice for long-term rentals, although its fair valuation indicates it may not provide significant upside in returns. Short-term vacation rental Given its location near resorts and beaches, the villa is appealing for short-term vacation rentals, although the current pricing shows a modest gap from fair value at 5.2%. While the neighbourhood is rated 72/100, indicating reasonable demand, the pricing limits the investment's potential for high returns. Buy-and-hold As a buy-and-hold investment, the property presents an opportunity for steady growth, as it is well-positioned in a desirable location for future appreciation. Nevertheless, with a fair valuation reflecting a 5.2% premium over fair value, the property may not be the most attractive in terms of long-term capital gains.
Moderate tenant turnover risk The tenant stability score of 70/100 indicates a potential for moderate turnover, which could impact rental income and increase vacancy periods.
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