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.
1-bedroom, 1-bathroom apartment of 107 m², built in 2008, energy rating B. Located on rua das Amendoeiras, Ferragudo parish, Lagoa municipality, Faro district. The apartment boasts direct access to a generous balcony, providing an ideal outdoor space for relaxation and dining, enhancing the living experience in Ferragudo.
The valuation. The asking price of €295,000 is significantly above the fair value of €116,274, resulting in an overvaluation of €178,726 (60.6%). This indicates that the property is overpriced. Buy-to-flip angle. Given its above-market asking price, the buy-to-flip strategy may be less viable, as potential resale opportunities could be limited, making it challenging to achieve a profitable return. Buy-to-let angle. The rental income potential is effectively nonexistent with a gross yield of 0%, making it a risky buy-and-hold strategy in this mixed neighborhood of Ferragudo, Lagoa where short-term vacation rentals are common.
Fair value modelled at €197,814 from the area baseline, adjusted for condition and location. Asking €295,000 sits €97,186 (32.9%) above — overpriced versus fair value.
Asking €295,000 versus the rua das Amendoeiras area baseline of €183,719 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 70 · Materials 75 · Room dimensions 77). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
rua das Amendoeiras
Area baseline €183,719 + condition -€1,337 + location +€15,432 = modelled fair value of €197,814 (€1,849/m²), a €97,186 (32.9%) gap versus the €295,000 asking price.
Short-term vacation rental The property is overpriced at €295,000, significantly exceeding its fair value of €116,274, resulting in a 60.6% gap. With a gross yield of 0%, the investment is unlikely to yield satisfactory returns in the competitive Algarve rental market. Buy-and-hold Given the current listing price of €295,000 against a fair value of €116,274, the property appears overpriced by 60.6%, which diminishes its appeal for long-term investment. The low condition score of 74/100 reinforces the risk of stagnation in capital appreciation over time. Family rental While the property is located in a family-friendly neighborhood, its listing price of €295,000 is substantially higher than the fair value of €116,274, indicating it is overpriced by 60.6%. This disparity limits its attractiveness for families looking for reasonably priced rental options in the region.
Economic Volatility Risk The economic stability score of 65 indicates potential fluctuations in the local economy that could impact rental income and property values negatively.
