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 290 m², built in 1989, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa features an impressive circular entrance hall and an upper terrace with panoramic sea views, making it a unique coastal retreat.
The valuation. The asking price of €1,495,000 is significantly above fair value at €1,070,561, creating a disparity of €424,439 (39.6%). This property is clearly overpriced, warranting careful consideration before investment.
Fair value modelled at €1,070,561 from 6 comparable sales in the area. Asking €1,495,000 sits €424,439 (39.6%) above — overpriced versus fair value.
Asking €1,495,000 versus the Luz, Lagos, Faro area baseline of €1,036,986 (€3,576/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €1,036,986, adjusted for condition and micro-location, gives a modelled fair value of €1,070,561 (€3,692/m²), a €424,439 (39.6%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 2d8185 | Subject | €1,495,000 | €5,155 | — | 85 | 69 |
| Luz · 8750a9 | Active | €895,000 | €3,255 | 36.9% | 78 | 71 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 42.1% | 78 | 69 |
| Barão de São Miguel · 8ee578 | Active | €995,000 | €4,129 | 19.9% | 76 | 68 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 36.9% | 75 | 72 |
| Median comp | €895,000 | €3,255 | 36.9% | 77 | 70 |
Short-term vacation rental The 39.6% gap from fair value suggests that the property is overpriced and may struggle to generate satisfactory returns in a short-term rental market driven by seasonal tourism. Additionally, the gross yield of 2.4% is relatively low, indicating potential challenges in profitability given the competitive nature of vacation rentals in the Algarve. Buy-and-hold The property's valuation as overpriced diminishes its attractiveness as a long-term investment, particularly in a volatile market reliant on seasonal hospitality. With a fair value significantly lower than the listing price, the long-term appreciation potential appears constrained, making it a less appealing hold. Long-term rental Given the high asking price, the property is not economically positioned to yield attractive returns in the long-term rental market, where demand may be lower in a tourism-focused economy. The current valuation being above fair market rates suggests that this investment could lead to cash flow challenges, especially in the less desirable neighborhood conditions. Not ideal for: Student housing, Luxury market Investing in student housing is unlikely to yield positive cash flow given the current overpriced valuation, compounded by the lack of demand in this sector. Moreover, positioning in the luxury market is questionable as the property does not meet high-end value expectations in its current state and location.
Economic volatilities With an economic stability score of 60/100, there is a risk of fluctuations in market conditions impacting property values and rental incomes negatively.
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