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.
3-bedroom, 2-bathroom country_house of 198 m², built in 1985, energy rating E. Located on rua Direita, 33, Luz parish, Lagos municipality, Faro district. Urban potential: This property has a maximum construction index of 0.8, enabling potential development of several townhouses in a prime location of Praia da Luz.
The valuation. The asking price of €2,250,000 is significantly above its fair value of €664,914, representing an overpricing of €1,585,086 (238.4%). This property is not a viable investment at this price point.
Fair value modelled at €664,914 from 6 comparable sales in the area. Asking €2,250,000 sits €1,585,086 (238.4%) above — overpriced versus fair value.
Asking €2,250,000 versus the rua Direita, 33 area baseline of €661,403 (€3,340/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 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 €661,403, adjusted for condition and micro-location, gives a modelled fair value of €664,914 (€3,358/m²), a €1,585,086 (238.4%) gap versus the €2,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Direita, 33 | Subject | €2,250,000 | €11,364 | — | 48 | 72 |
| Luz · 956cb5 | Active | €480,000 | €4,800 | 57.8% | 52 | 70 |
| Luz · 46819a | Active | €550,000 | €3,481 | 69.4% | — | 72 |
| Luz · cd0950 | Active | €450,000 | €3,103 | 72.7% | 60 | 71 |
| Luz · 46823a | Active | €550,000 | €3,235 | 71.5% | — | 71 |
| Median comp | €515,000 | €3,358 | 70.4% | 56 | 71 |
Short-term vacation rental The potential for short-term vacation rentals in Luz is limited given the current price, as the property is overpriced by 238.4% against its fair value of €664,914, indicating a significant financial risk for investors. With a gross yield of only 1.6%, the returns do not justify the investment, especially in a market that demands competitive pricing due to its reliance on international tourism. Family rental Investing in this property as a family rental is also questionable, given its significant pricing gap and an overall condition score of 55/100 which suggests the property may require considerable improvements. Families typically seek better value for their rental investments, and at an asking price of €2,250,000, this property does not meet those expectations. Buy-and-hold The buy-and-hold strategy is not advisable for this overpriced property, as its valuation deficit reveals a lack of sufficient upside potential, especially with a fair value at €664,914. Additionally, with a low gross yield of 1.6%, long-term investors would likely find their capital tied up in an asset that fails to appreciate in line with market expectations.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturn affecting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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