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 €672,375 (€4,075/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 €672,375 + 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.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · f3607d | Subject | €395,000 | €2,394 | — | 72 | 74 |
| rua de São Pedro | Active | €395,000 | €2,394 | 0% | 75 | 73 |
| urbanização Cerca do Moinho | Active | €475,000 | €2,896 | 21.0% | 73 | 64 |
| rua Engenheiro José de Bívar, 2 | Active | €450,000 | €3,516 | 46.9% | 68 | 67 |
| praceta Mar de Timor | Active | €335,000 | €3,018 | 26.1% | 68 | 71 |
| Median comp | €422,500 | €2,957 | 23.5% | 71 | 69 |
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.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
