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, 4-bathroom apartment of 86 m², built in 2017, energy rating A. Located Ferragudo parish, Lagoa municipality, Faro district. This apartment features a private garden and heated pool, enhancing its luxurious outdoor living experience while providing breathtaking views of São João do Arade Castle and the Atlantic Ocean.
The valuation. The asking price of €2,500,000 significantly exceeds the fair value of €172,588, representing an overvaluation of €2,327,412 (93.1%). This makes the property overpriced in the current market.
Fair value modelled at €172,588 from the area baseline, adjusted for condition and location. Asking €2,500,000 sits €2,327,412 (93.1%) above — overpriced versus fair value.
Asking €2,500,000 versus the Ferragudo, Lagoa, Faro area baseline of €323,790 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 85 · Materials 90 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 78 · Amenities 65 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €323,790 + condition +€10,750 + location +€14,176 = modelled fair value of €172,588 (€2,007/m²), a €2,327,412 (93.1%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 28ba61 | Subject | €2,500,000 | €29,070 | — | 85 | 74 |
| Portimão · 82c82c | Active | €540,000 | €3,273 | 88.7% | 73 | 73 |
| beco do Fojo | Active | €570,000 | €3,184 | 89.0% | 80 | 71 |
| Portimão · 6d5229 | Active | €540,000 | €2,512 | 91.4% | 75 | 73 |
| rua Zeca Afonso S / N | Active | €549,000 | €3,519 | 87.9% | 80 | 68 |
| Median comp | €544,500 | €3,229 | 88.9% | 78 | 72 |
Short-term vacation rental The property is overpriced at €2,500,000, with a gap of 93.1% from its fair value of €172,588, indicating that potential returns are not viable. Given the yield is at 0%, this investment strategy lacks financial justification in the competitive vacation rental market. Long-term rental With a fair value of €172,588 and the property listed at €2,500,000, it is significantly overpriced, suggesting a high barrier to entry for long-term rental opportunities. Moreover, the 0% gross yield underscores that this property will not generate consistent income, detracting from its attractiveness as a long-term rental investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is ill-advised due to its substantial overpricing, with a 93.1% gap from fair value. The gross yield of 0% signals that this property will not appreciate in value relative to initial expectations, making it a poor long-term investment choice.
Economic Vulnerability With an economic stability score of 65/100, there is a risk that fluctuations in the local economy could affect rental demand and property value.
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