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, 3-bathroom chalet of 281 m², built in 2004, energy rating B. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a versatile lower floor with an independent living space and direct pool access, ideal for guests or as a private retreat. Outdoor Area: The landscaped outdoor space enhances leisure with the private pool, perfect for relaxation.
The valuation. The asking price of €850,000 is significantly above the fair value of €539,598, representing an excessive premium of €310,402 (36.5%). This property is clearly overpriced based on current market conditions.
Fair value modelled at €539,598 from the area baseline, adjusted for condition and location. Asking €850,000 sits €310,402 (36.5%) above — overpriced versus fair value.
Asking €850,000 versus the Ferragudo, Lagoa, Faro area baseline of €482,477 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 75 · Economic 55 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €482,477 + condition +€12,733 + location +€44,388 = modelled fair value of €539,598 (€1,920/m²), a €310,402 (36.5%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 25f5aa | Subject | €850,000 | €3,025 | — | 75 | 73 |
| Ferragudo · 956e09 | Active | €850,000 | €3,025 | 0% | 75 | 64 |
| Ferragudo · bf283f | Active | €1,400,000 | €3,836 | 26.8% | 80 | 73 |
| urbanização das Sesmarias | Active | €974,500 | €7,439 | 145.9% | 82 | 80 |
| rua Doutor Manuel Bentes | Active | €900,000 | €5,806 | 92.0% | 75 | 63 |
| Median comp | €937,250 | €4,821 | 59.4% | 78 | 69 |
Short-term vacation rental Given the property's valuation gap of 36.5%, it is not conducive to thrive in a competitive short-term vacation rental market where price sensitivity is crucial. The gross yield of 3.8% is below the typical threshold required to justify such an investment in this tourism-centric area. Buy-and-hold Acquiring this property at €850,000 is not advisable, as it is overpriced compared to the fair value of €539,598, which undermines long-term equity growth potential. The below-average condition rating of 78/100 suggests that holding this asset may require additional investment for maintenance or upgrades to attract future buyers or renters. Long-term rental Investing in this property as a long-term rental option would be troubling due to the significant price overvaluation, with the fair value reflecting a gap of 36.5%. The current gross yield of 3.8% does not align with market expectations, making it a less appealing choice for securing reliable long-term rental income in this tourist-driven locale.
Economic Vulnerability The economic stability score of 55/100 suggests a potential risk of economic downturn affecting property values and rental income.
