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 164 m², built in 2003, energy rating C. Located on urbanização Cerca do Moinho, Ferragudo parish, Lagoa municipality, Faro district. This apartment features a spacious private terrace with barbecue ideal for outdoor entertaining and offers stunning unobstructed views of the river and Marina of Ferragudo.
The valuation. The asking price of €475,000 exceeds the fair value of €298,894 by €176,106, representing a 37.1% overvaluation. This indicates that the property is overpriced compared to its market worth.
Fair value modelled at €298,894 from the area baseline, adjusted for condition and location. Asking €475,000 sits €176,106 (37.1%) above — overpriced versus fair value.
Asking €475,000 versus the urbanização Cerca do Moinho area baseline of €281,588 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 73 · Materials 80 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Cerca do Moinho
Area baseline €281,588 + condition +€1,537 + location +€15,769 = modelled fair value of €298,894 (€1,823/m²), a €176,106 (37.1%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Cerca do Moinho | Subject | €475,000 | €2,896 | — | 73 | 64 |
| Portimão · 956a24 | Active | €500,000 | €4,808 | 66.0% | 70 | 67 |
| Portimão · 25f60f | Active | €355,000 | €3,550 | 22.6% | 76 | 65 |
| Ferragudo · f3607d | Active | €395,000 | €2,394 | 17.3% | 72 | 74 |
| avenida Tomás Cabreira | Active | €630,000 | €6,632 | 129.0% | 74 | 74 |
| Median comp | €447,500 | €4,179 | 44.3% | 73 | 71 |
Short-term vacation rental Despite the property’s appeal in a tourism-oriented area of Ferragudo, its current listing price of €475,000 is significantly above the fair value of €298,894, indicating an overpricing of 37.1%. The gross yield of 4.6% is insufficient to justify the elevated purchase cost, especially given the seasonal employment that affects economic stability in the region. Long-term rental While there may be demand for long-term rentals in the coastal Algarve, the investment is hampered by an overpriced listing at €475,000 compared to a fair value of €298,894, marking a 37.1% gap. Additionally, the property’s condition and neighborhood ratings do not support the high price, leading to concerns about the sustainability of rent yields in the long term.
Economic Vulnerability The property faces economic vulnerability due to a low economic stability score of 55/100, which indicates potential challenges in local economic conditions. Tenant Instability Additionally, a tenant stability score of 60/100 suggests that tenants may not be secure, raising concerns about consistent rental income.
