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.
2-bedroom, 2-bathroom apartment of 165 m², built in 2004. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment includes a 19 sqm exclusive outdoor area integrated into landscaped green spaces, offering additional leisure options immediately adjacent to the living space.
The valuation. The asking price of €395,000 is significantly higher than the fair value of €311,791, representing an overprice of €83,209 (21.1%). This suggests that potential buyers should approach with caution given the inflated valuation.
Fair value modelled at €311,791 from the area baseline, adjusted for condition and location. Asking €395,000 sits €83,209 (21.1%) above — overpriced versus fair value.
Asking €395,000 versus the Ferragudo, Lagoa, Faro area baseline of €283,305 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 80 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €283,305 + condition +€1,289 + location +€27,197 = modelled fair value of €311,791 (€1,890/m²), a €83,209 (21.1%) gap versus the €395,000 asking price.
Short-term vacation rental The property's listing price of €395,000, significantly above the fair value of €311,791, suggests it may not generate sufficient return on investment through short-term rentals, despite a promising gross yield of 6.3%. Given the €83,209 gap, the risk of overpaying could outweigh the potential for consistent seasonal income in this tourist-driven market. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable, as the overvaluation of €395,000 compared to the fair value of €311,791 indicates a lack of immediate equity growth potential. While the decent condition score of 76/100 and the neighborhood quality of 74/100 are appealing, the substantial price gap raises concerns about long-term profitability. Family rental The €395,000 asking price creates a challenge for family rental prospects, as it surpasses the fair value of €311,791, leading to diminished cash flow potential relative to the market value. This property may struggle to attract long-term tenants if priced beyond its true worth, ultimately impacting profitability in a neighborhood with a tenant quality score of 74/100.
Economic Sensitivity The economic stability score of 65/100 indicates potential vulnerability to economic downturns, which may affect tenant occupancy rates and property value negatively.
