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 142 m², built in 1984, energy rating C. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts a common rooftop terrace offering scenic views, while its bright living and dining areas create a seamless transition to a lovely outdoor terrace. Condition Notes: Recently updated with quality finishes, it balances modern aesthetics with comfort.
The valuation. The asking price of €460,000 is significantly above the fair value of €273,035, representing a difference of €186,965 (40.6%). This property is therefore considered overpriced.
Fair value modelled at €273,035 from the area baseline, adjusted for condition and location. Asking €460,000 sits €186,965 (40.6%) above — overpriced versus fair value.
Asking €460,000 versus the Ferragudo, Lagoa, Faro area baseline of €578,650 (€4,075/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €578,650 + condition +€7,766 + location +€21,456 = modelled fair value of €273,035 (€1,923/m²), a €186,965 (40.6%) gap versus the €460,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 6fb9b0 | Subject | €460,000 | €3,239 | — | 75 | 72 |
| avenida Tomás Cabreira | Active | €630,000 | €6,632 | 104.7% | 74 | 74 |
| urbanização Cerca do Moinho | Active | €475,000 | €2,896 | 10.6% | 73 | 64 |
| Ferragudo · f3607d | Active | €395,000 | €2,394 | 26.1% | 72 | 74 |
| urbanização da Hortinha | Active | €375,000 | €2,757 | 14.9% | 80 | 72 |
| Median comp | €435,000 | €2,827 | 12.7% | 74 | 73 |
Short-term vacation rental The property is overpriced by 40.6%, making it an unappealing choice for short-term vacation rental investments that typically rely on strong cash flow. While Algarve's tourism can drive demand, this property’s yield of 3.7% gross does not compensate for the significant price gap. Buy-and-hold At a listing of €460,000 against a fair value of €273,035, the potential for appreciation in a buy-and-hold strategy is severely diminished, indicating a poor investment relative to its current market conditions. The condition score of 79/100 does not justify the inflated price, especially considering the slower growth trajectory expected due to its overpriced status. Long-term rental Investing in this property for long-term rental purposes is questionable due to the 40.6% overvaluation compared to fair value, limiting overall returns. With a gross yield of 3.7%, the investment does not align with the typical expectations for long-term rental performance, further reinforcing the suggestion that it is saddled with an inflated price tag.
Economic Fluctuation Risk The economic stability score of 65/100 indicates potential vulnerability to downturns, which could affect tenant retention and rental income stability.
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