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 365 m², energy rating B. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This villa offers unobstructed terrace views from the first-floor suites, enhancing the outdoor experience with prime solar exposure, perfect for enjoying the Algarve sunset. Notáveis Características: Esta villa oferece vistas desobstruídas do terraço das suítes no primeiro andar, aprimorando a experiência ao ar livre com excelente exposição solar, ideal para desfrutar do pôr do sol algarvio.
The valuation. The asking price of €1,400,000 is significantly above fair value, which is estimated at €708,885, creating an overvaluation of €691,115, or 49.4%. This property is overpriced relative to its intrinsic worth.
Fair value modelled at €708,885 from the area baseline, adjusted for condition and location. Asking €1,400,000 sits €691,115 (49.4%) above — overpriced versus fair value.
Asking €1,400,000 versus the Ferragudo, Lagoa, Faro area baseline of €1,374,225 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 78 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €1,374,225 + condition +€24,523 + location +€57,657 = modelled fair value of €708,885 (€1,942/m²), a €691,115 (49.4%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · bf283f | Subject | €1,400,000 | €3,836 | — | 80 | 73 |
| Ferragudo · 956e09 | Active | €850,000 | €3,025 | 21.1% | 75 | 64 |
| Ferragudo · 25f5aa | Active | €850,000 | €3,025 | 21.1% | 75 | 73 |
| Lagoa e Carvoeiro · d7a496 | Active | €1,636,000 | €4,305 | 12.2% | 75 | 74 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 93.9% | 82 | 80 |
| Median comp | €912,250 | €3,665 | 4.4% | 75 | 74 |
Short-term vacation rental The property in Ferragudo is overpriced at €1,400,000, significantly exceeding its fair value of €708,885 by 49.4%. With a gross yield of only 3%, this investment strategy may not generate sufficient returns in a competitive tourist-driven market. Buy-and-hold Acquiring this property for a long-term investment appears challenging due to its 49.4% markup over fair value, set at €708,885. The current yield of 3% may not justify the high purchase price, making this strategy less attractive in the long run. Family rental The potential for family rentals is compromised by the property's price of €1,400,000, which surpasses its estimated value of €708,885 by 49.4%. This substantial overpricing limits the appeal to families seeking affordable rental options in the area, where the neighborhood quality is rated 73/100.
Potential Tenant Turnover Tenants may be less stable due to the lower economic stability score of 65, which could lead to increased turnover and vacancies.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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