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 292 m², built in 1999, energy rating D. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: This villa boasts original stone fireplaces and arched doorways, enhancing its charm and character, while offering a spacious outdoor area for relaxed entertainment and leisure activities.
The valuation. The asking price of €750,000 sits significantly below the fair value of €1,407,615, marked as €657,615 (46.7%) underpriced. This presents an attractive opportunity for potential investors seeking value. Buy-to-flip angle. With a good quality construction score of 77/100, there is potential for cosmetic updates targeting 1990s styling, enhancing market appeal for a quicker resale at a premium. Buy-to-let angle. A gross yield of 4.9% suggests a robust rental income strategy through short-term vacation rentals, estimated at €3,062/month, capitalizing on the area's tourist attractiveness.
Fair value modelled at €1,407,615 from 6 comparable sales in the area. Asking €750,000 sits €657,615 (46.7%) below — the upside to fair value.
Asking €750,000 versus the Luz, Lagos, Faro area baseline of €1,374,098 (€4,706/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €1,374,098, adjusted for condition and micro-location, gives a modelled fair value of €1,407,615 (€4,821/m²), a €657,615 (46.7%) gap versus the €750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 76b47d | Subject | €750,000 | €2,568 | — | 76 | 70 |
| Luz · 1907aa | Active | €2,450,000 | €7,656 | 198.1% | 75 | 72 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 12.5% | 74 | 75 |
| Luz · 096ddc | Active | €2,000,000 | €11,628 | 352.7% | 72 | 70 |
| urbanização Porto Dona Maria | Active | €1,062,500 | €3,965 | 54.4% | 72 | 72 |
| Median comp | €1,531,250 | €5,811 | 126.2% | 73 | 72 |
Short-term vacation rental The property, listed at €750,000, presents a significant opportunity with a fair value of €1,407,615, indicating a substantial gap of 46.7%. Given its tourist attractiveness and a gross yield of 4.9%, it is well-positioned to capture seasonal rental demand effectively. Buy-and-hold With a fair value that is significantly higher than the listing price, this 4-bed villa in Luz, Lagos offers a compelling buy-and-hold strategy for long-term capital appreciation. The 77/100 condition rating further supports its suitability as a long-term asset in a desirable location. Family rental The attractive fair value suggests that this villa can provide a strong family rental opportunity, yielding a respectable 4.9% gross return. Coupled with a neighborhood rating of 70/100, it demonstrates the potential for stable, long-term tenants seeking quality family housing in a thriving area.
Economic vulnerability With an economic stability score of 60/100, the property may be at risk from potential economic downturns that could affect tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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