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.
8-bedroom, 4-bathroom country_house of 441 m², built in 2005. Located Luz parish, Lagos municipality, Faro district. This property features extensive outdoor living spaces, including multiple independent terraces for each living area and an expansive garden with various fruit trees that enhance privacy and tranquility.
The valuation. The asking price of €1,395,000 sits €497,787 (26.3%) below the fair value of €1,892,787. This property is subpriced and presents an attractive opportunity for savvy investors.
Fair value modelled at €1,892,787 from 6 comparable sales in the area. Asking €1,395,000 sits €497,787 (26.3%) below — the upside to fair value.
Asking €1,395,000 versus the Luz, Lagos, Faro area baseline of €1,839,282 (€4,171/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €1,839,282, adjusted for condition and micro-location, gives a modelled fair value of €1,892,787 (€4,292/m²), a €497,787 (26.3%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 0aca37 | Subject | €1,395,000 | €3,163 | — | 77 | 73 |
| Luz · 76b14d | Active | €1,395,000 | €4,164 | 31.6% | 80 | 72 |
| Luz · efdc83 | Active | €1,150,000 | €2,745 | 13.2% | 75 | 76 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 13.2% | 74 | 72 |
| Luz · c17973 | Active | €2,500,000 | €5,896 | 86.4% | — | 71 |
| Median comp | €1,272,500 | €3,455 | 9.2% | 75 | 72 |
Short-term vacation rental The property, located in the tourist-rich Algarve, presents a solid opportunity for short-term vacation rentals, benefitting from seasonal demand in a high-safety area. Given its large size and fair value gap of 26.3%, this investment can generate appealing returns despite a current gross yield of 0%. Long-term rental With a fair value exceeding the listing price, investing in this property for long-term rental could capitalize on the steady demand for housing in Lagos, especially considering its relatively good amenities and acceptable neighborhood ratings. While the gross yield is presently 0%, the potential for appreciation and rental income remains promising, making it an attractive option. Family rental The spacious 8-bed layout makes this property ideal for families looking for long-term residences in the Algarve, where the neighborhood offers a mix of average schools and good safety. Despite a low initial yield, the attractive fair value gap enhances its viability as a family rental in this desirable region.
Economic Volatility Risk With an economic stability score of 65/100, there is a heightened risk of fluctuations in the local economy that may impact 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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