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.
5-bedroom, 5-bathroom villa of 240 m², built in 1986, energy rating C. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The luxurious terrace offers unobstructed sea views and is perfect for sunset gatherings, while the serene garden creates a peaceful retreat just minutes from Pintadinho Beach.
The valuation. The asking price of €1,450,000 significantly exceeds the fair value of €289,151, resulting in a discrepancy of €1,160,849 or 80.1%. This property is therefore classified as overpriced.
Fair value modelled at €472,718 from the area baseline, adjusted for condition and location. Asking €1,450,000 sits €977,282 (67.4%) above — overpriced versus fair value.
Asking €1,450,000 versus the Ferragudo, Lagoa, Faro area baseline of €412,080 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 83 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Ferragudo, Lagoa, Faro
Area baseline €412,080 + condition +€24,375 + location +€36,263 = modelled fair value of €472,718 (€1,970/m²), a €977,282 (67.4%) gap versus the €1,450,000 asking price.
Short-term vacation rental The 5-bed villa in Ferragudo, priced at €1,450,000, is significantly overpriced at an 80.1% gap from its fair value of €289,151. Given this steep valuation combined with a low yield of 2%, it fails to represent a viable short-term rental investment despite the Algarve's tourist appeal. Long-term rental With a gross yield of only 2% and a striking gap of 80.1% from fair value, this property is overpriced for long-term rental purposes. Even though Ferragudo is a desirable location, the financial metrics do not support the cost. Buy-and-hold The €1,450,000 asking price for the villa reflects an 80.1% increase above its fair value of €289,151, suggesting it is overpriced for a buy-and-hold strategy. Investors might find little justification for this investment, especially considering its low yield and high entry cost.
Tenant turnover risk The tenant stability score of 70/100 suggests a moderate likelihood of tenant turnover, which could lead to increased vacancy periods and related costs.
