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 house of 281 m², built in 2004, energy rating B. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes an independent lower-level suite with direct pool access, perfect for guests or autonomy, plus solar panels for enhanced energy efficiency.
The valuation. The asking price of €850,000 is significantly above its fair value of €523,546, creating a gap of €326,454, or 38.4%. This property is therefore classified as overpriced. Buy-to-flip angle. A resale strategy would involve renovating the property and positioning it for a higher sale price, but given the initial overvaluation, achieving a profitable flip may be challenging. Buy-to-let angle. With a gross yield of 3.5% and estimated rental income of €2,479/month, the property has potential for steady cash flow, particularly in a tourism-driven market like Ferragudo.
Fair value modelled at €523,546 from the area baseline, adjusted for condition and location. Asking €850,000 sits €326,454 (38.4%) above — overpriced versus fair value.
Asking €850,000 versus the Ferragudo, Lagoa, Faro area baseline of €1,057,965 (€3,765/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 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €1,057,965 + condition +€14,050 + location +€27,019 = modelled fair value of €523,546 (€1,863/m²), a €326,454 (38.4%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 956e09 | Subject | €850,000 | €3,025 | — | 75 | 64 |
| Ferragudo · bf283f | Active | €1,400,000 | €3,836 | 26.8% | 80 | 73 |
| rua Doutor Manuel Bentes | Active | €900,000 | €5,806 | 92.0% | 75 | 63 |
| urbanização Boca do Rio, 7 | Active | €569,000 | €1,550 | 48.7% | 80 | 66 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 61.2% | 70 | 70 |
| Median comp | €1,047,500 | €4,357 | 44.0% | 78 | 68 |
Short-term vacation rental The property is overpriced at €850,000, with a fair value of €523,546 indicating a significant gap of 38.4%. Additionally, the 3.5% gross yield suggests that potential returns will be constrained by the inflated purchase price, limiting its attractiveness for short-term vacation rentals. Long-term rental With a fair value of €523,546 compared to the listing price of €850,000, this property reflects a 38.4% premium that diminishes its viability as a long-term rental investment. The neighborhood rating of 64/100, alongside a gross yield of 3.5%, further indicates that this investment may not meet the expected financial performance norms for long-term hold strategies. Buy-and-hold The 38.4% gap from its fair value of €523,546 renders this property overpriced at €850,000, suggesting limited upside potential for a buy-and-hold strategy. Coupled with the ongoing seasonal nature of the local economy, long-term capital appreciation prospects are doubtful, making it a less favorable investment choice for holding in the long run.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 60/100, there is a significant risk of decreased demand and potential vacancy issues due to underlying economic vulnerabilities.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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