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 apartment of 136 m², built in 1990, energy rating D. Located on urbanização da Hortinha, Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment includes a private 24 m² patio perfect for outdoor leisure, enhancing its appeal in the sought-after Ferragudo area. Investment Potential: Its prime location in a tranquil cul-de-sac, away from traffic, increases value. Condition: Completely renovated with modern finishes throughout.
The valuation. The asking price of €375,000 exceeds the fair value of €261,711 by €113,289, representing a 30.2% premium. This property is deemed overpriced based on current market analysis.
Fair value modelled at €261,711 from the area baseline, adjusted for condition and location. Asking €375,000 sits €113,289 (30.2%) above — overpriced versus fair value.
Asking €375,000 versus the urbanização da Hortinha area baseline of €233,512 (€1,717/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 77). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 70 · Economic 68 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
urbanização da Hortinha
Area baseline €233,512 + condition +€7,650 + location +€20,549 = modelled fair value of €261,711 (€1,924/m²), a €113,289 (30.2%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização da Hortinha | Subject | €375,000 | €2,757 | — | 80 | 72 |
| Portimão · ba5a38 | Active | €310,000 | €3,827 | 38.8% | 74 | 73 |
| Ferragudo · 6fb9b0 | Active | €460,000 | €3,239 | 17.5% | 75 | 72 |
| Portimão · cfdd0f | Active | €370,000 | €3,426 | 24.2% | 70 | 75 |
| avenida Tomás Cabreira, 34 | Active | €525,000 | €5,899 | 113.9% | 80 | 67 |
| Median comp | €415,000 | €3,627 | 31.5% | 75 | 73 |
Short-term vacation rental This 3-bed apartment in Ferragudo is overpriced at €375,000 compared to its fair value of €261,711, creating a worrying 30.2% gap. Despite the appealing vacation rental market in the Algarve region, the yield of 4.3% gross does not justify the inflated price, diminishing long-term profitability prospects. Buy-and-hold While Ferragudo’s tourism appeal supports the property’s potential, the current price of €375,000 significantly exceeds the fair value of €261,711, indicating it is overpriced. As such, the buy-and-hold strategy may not realize expected returns due to the inadequate yield and elevated acquisition costs. Family rental The asset is not positioned favorably for family rental due to its overpriced tag of €375,000 against a fair valuation of €261,711, representing a stark 30.2% discrepancy. Furthermore, with a condition score of 79 and neighborhood rating of 72, the cost does not align with the value proposition families often seek in residential rentals.
Economic Vulnerability The economic stability score of 68 indicates moderate risk, suggesting potential fluctuations in local market conditions that may impact investment returns.
