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 2000, energy rating C. Located Luz parish, Lagos municipality, Faro district. Noteworthy Features: The villa boasts a spacious rooftop terrace with exceptional ocean views, enhancing its outdoor living experience, while the heated Roman-style pool with an electric solar cover ensures year-round enjoyment. Condition Notes: Although the interior finishes are functional, they reflect an older design era and could benefit from modernization. Investment Opportunity: This charming property offers a unique blend of space, personality, and tranquility, making it a highly appealing permanent residence or vacation home. Location Context: Located in Cama da Vaca, the villa is a short drive from the popular coastal villages of Praia da Luz and Burgau, known for their beautiful beaches and vibrant community.
The valuation. The asking price of €1,495,000 is significantly above the fair value of €1,053,667, indicating an overpriced status with a difference of €441,333 (41.9%). This valuation may deter prospective buyers.
Fair value modelled at €1,053,667 from 5 comparable sales in the area. Asking €1,495,000 sits €441,333 (41.9%) above — overpriced versus fair value.
Asking €1,495,000 versus the Luz, Lagos, Faro area baseline of €1,020,462 (€3,519/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 €1,020,462, adjusted for condition and micro-location, gives a modelled fair value of €1,053,667 (€3,633/m²), a €441,333 (41.9%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 07fe6d | Subject | €1,495,000 | €5,155 | — | 78 | 71 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 42.1% | 78 | 69 |
| Luz · 8750a9 | Active | €895,000 | €3,255 | 36.9% | 78 | 71 |
| Luz · 1907aa | Active | €2,450,000 | €7,656 | 48.5% | 75 | 72 |
| Luz · 93853f | Active | €1,195,000 | €5,745 | 11.4% | 78 | 76 |
| Median comp | €1,045,000 | €4,500 | 12.7% | 78 | 72 |
Long-term rental The property offers a gross yield of only 2.8%, indicating weakness in long-term rental profitability. Given that the property is overpriced at 41.9% above fair value, investing for rental income is likely to yield disappointing returns. Short-term vacation rental Although vacation rentals may benefit from proximity to Algarve's attractions, the property’s valuation suggests limited potential for return on investment. At a 41.9% premium over fair value, the financials for short-term rentals are less appealing than they might initially appear. Buy-and-hold Investing in this property with a buy-and-hold strategy is challenged by its significant overvaluation relative to its fair value. The 41.9% gap indicates that long-term appreciation is likely to be hindered by the current price point. Not ideal for: Student housing, Luxury market, Industrial investment This property does not align well with strategies focused on student housing, luxury markets, or industrial investments due to its neighborhood quality ratings and overall price. Therefore, these options would not make sense in the current context.
Economic Sensitivity With an economic stability score of 65/100, fluctuations in the local economy could significantly impact rental demand and property value.
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