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 duplex of 130 m², energy rating C. Located Ferragudo parish, Lagoa municipality, Faro district. Property Features: This duplex benefits from direct access to private terraces and a beautifully landscaped garden, enhancing outdoor living and privacy in a tranquil setting.
The valuation. The asking price of €875,000 sits significantly above the fair value of €258,814, creating a disparity of €616,186 (70.4%). This property is considered overpriced. Buy-to-flip angle. The buy-to-flip strategy may involve renovation to enhance appeal before resale, but the current asking price limits potential profit margins. Buy-to-let angle. With an estimated rental income of €1,240/month, the gross yield stands at 1.7%, indicating a low return on investment for a buy-and-hold strategy.
Fair value modelled at €258,814 from the area baseline, adjusted for condition and location. Asking €875,000 sits €616,186 (70.4%) above — overpriced versus fair value.
Asking €875,000 versus the Ferragudo, Lagoa, Faro area baseline of €529,750 (€4,075/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 80 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €529,750 + condition +€12,391 + location +€23,214 = modelled fair value of €258,814 (€1,991/m²), a €616,186 (70.4%) gap versus the €875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 6fbc4b | Subject | €875,000 | €6,731 | — | 80 | 76 |
| Portimão · 001afa | Active | €720,000 | €4,675 | 30.5% | 80 | 76 |
| Ferragudo · 6fb9b0 | Active | €460,000 | €3,239 | 51.9% | 75 | 72 |
| Ferragudo · 25f85f | Active | €415,000 | €2,964 | 56.0% | 76 | 73 |
| Portimão · 956a24 | Active | €500,000 | €4,808 | 28.6% | 70 | 67 |
| Median comp | €480,000 | €3,957 | 41.2% | 76 | 73 |
Short-term vacation rental The current listing price of €875,000 significantly exceeds the fair value of €258,814, indicating that the property is overpriced and may struggle to attract tourists at this price point. With a low gross yield of 1.7%, short-term rentals in this property will not yield a desirable return on investment. Buy-and-hold Investing in this 3-bed duplex as a buy-and-hold strategy would be inadvisable; its fair value gap of 70.4% suggests the property is overpriced and unlikely to appreciate sufficiently over time. The lack of compelling yield at 1.7% further strengthens the case against holding this asset long-term. Family rental The property’s high listing price relative to its fair value means it is overpriced for a family rental market, where competitive pricing is crucial for attracting stable tenants. Additionally, with a moderate condition rating of 81/100 and a neighborhood score of 76/100, the allure for families may not justify the high cost of entry.
Economic Instability Risk The economic stability score of 70/100 indicates potential fluctuations in market conditions that could affect property value and rental demand.
