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.
1-bedroom, 0-bathroom house of 119 m², energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. This property includes appealing outdoor areas with a terrace designed for al fresco dining, enhancing the living experience in the desirable Algarve climate.
The valuation. The asking price of €535,000 is significantly above fair value at €225,875, making it overpriced by €309,125 (57.8%). This disconnect suggests limited room for negotiation or recovery of perceived value.
Fair value modelled at €225,875 from the area baseline, adjusted for condition and location. Asking €535,000 sits €309,125 (57.8%) above — overpriced versus fair value.
Asking €535,000 versus the Ferragudo, Lagoa, Faro area baseline of €204,323 (€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 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €204,323 + condition +€5,206 + location +€16,346 = modelled fair value of €225,875 (€1,898/m²), a €309,125 (57.8%) gap versus the €535,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 02420a | Subject | €535,000 | €4,496 | — | 75 | 70 |
| rua de Francisco Duarte | Active | €320,000 | €4,000 | 11.0% | 75 | 70 |
| Portimão · 956f2d | Active | €1,500,000 | €23,438 | 421.3% | 70 | 72 |
| Portimão · 65a674 | Active | €349,000 | €4,474 | 0.5% | 75 | 73 |
| rua J. J. Rodrigues de Freitas, 13 | Active | €459,000 | €5,961 | 32.6% | 68 | 73 |
| Median comp | €404,000 | €5,218 | 16.1% | 73 | 73 |
Short-term vacation rental The 1-bed house in Ferragudo is priced at €535,000, significantly above its fair value of €225,875, creating a substantial 57.8% gap that indicates it is overpriced for a short-term vacation rental strategy. With a gross yield of only 3.1%, this property presents challenges in achieving profitable returns in a market driven by tourism. Long-term rental Given the substantial disparity between the listing price of €535,000 and the fair value of €225,875, this property is overpriced for a long-term rental investment. The current gross yield of 3.1% does not justify the high entry cost, making it a less attractive option for sustained rental income. Buy-and-hold This 1-bed house is currently valued at €535,000, which is notably higher than its fair value of €225,875, reflecting a 57.8% overpricing that makes it unsuitable for a buy-and-hold strategy. With the gross yield at just 3.1%, potential investors may find it challenging to realize worthwhile appreciation over time in this property.
Economic Volatility Risk The economic stability score of 60/100 indicates potential fluctuations in market conditions, which could impact future rental income and property value.
