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.
5-bedroom, 4-bathroom villa of 172 m², built in 1988, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The property includes a separate floor featuring two bedrooms and a communal area, ideal for extended family living or guest accommodations, while also boasting a private borehole for garden irrigation.
The valuation. The asking price of €2,000,000 significantly exceeds the fair value of €782,664, indicating it is overpriced by €1,217,336 or 155.5%. Therefore, the property does not represent a sound investment opportunity based on current market conditions.
Fair value modelled at €782,664 from 6 comparable sales in the area. Asking €2,000,000 sits €1,217,336 (155.5%) above — overpriced versus fair value.
Asking €2,000,000 versus the Luz, Lagos, Faro area baseline of €768,803 (€4,470/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €768,803, adjusted for condition and micro-location, gives a modelled fair value of €782,664 (€4,550/m²), a €1,217,336 (155.5%) gap versus the €2,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 096ddc | Subject | €2,000,000 | €11,628 | — | 72 | 70 |
| Luz · 1907aa | Active | €2,450,000 | €7,656 | 34.2% | 75 | 72 |
| Luz · 1908a2 | Active | €775,000 | €4,282 | 63.2% | 75 | 71 |
| rua Hortas da Ribeira, 14 | Active | €800,000 | €4,420 | 62.0% | 70 | 69 |
| rua Principal | Active | €1,250,000 | €4,808 | 58.7% | 72 | 62 |
| Median comp | €1,025,000 | €4,614 | 60.3% | 74 | 70 |
Short-term vacation rental The villa, currently listed at €2,000,000, is overpriced with a fair value of €782,664, representing a significant gap of 155.5%. At a low yield of 2.3%, it fails to align with market expectations for short-term vacation rental profitability in the tourism-driven Algarve region. Buy-and-hold Given its high listing price of €2,000,000 versus a fair value of €782,664, this property is not a sound investment for a buy-and-hold strategy. With only a 2.3% gross yield, it does not support long-term capital appreciation in the competitive real estate market of Lagos. Family rental The current valuation of €2,000,000 far exceeds the fair value of €782,664, making the property overpriced for a family rental strategy. Coupled with subpar yield and neighborhood ratings, it does not represent a viable option for attracting quality family tenants in Luz. Not ideal for: This property is not suitable for student housing, luxury market investments, or industrial investments due to its inflated price and low yield statistics.
Economic Fluctuation Risk With an economic stability score of 60/100, there is a significant risk of downturns impacting property value and revenue potential.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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