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 177 m², built in 2005, energy rating C. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment includes a unique private garden, enhancing outdoor living, while its location within a tourist complex provides 24-hour reception services for convenience.
The valuation. The asking price of €875,000 is significantly above fair value, which sits at €353,994, indicating an overpriced status of €521,006 (59.5%). This discrepancy suggests caution for potential investors.
Fair value modelled at €353,994 from the area baseline, adjusted for condition and location. Asking €875,000 sits €521,006 (59.5%) above — overpriced versus fair value.
Asking €875,000 versus the Ferragudo, Lagoa, Faro area baseline of €666,405 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 85 · Materials 87 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €666,405 + condition +€22,125 + location +€27,960 = modelled fair value of €353,994 (€2,000/m²), a €521,006 (59.5%) gap versus the €875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 4d4546 | Subject | €875,000 | €4,944 | — | 85 | 73 |
| Ferragudo · 6fb9b0 | Active | €460,000 | €3,239 | 34.5% | 75 | 72 |
| avenida Tomás Cabreira | Active | €630,000 | €6,632 | 34.1% | 74 | 74 |
| Ferragudo · 6fbc4b | Active | €875,000 | €6,731 | 36.2% | 80 | 76 |
| Portimão · 1e63d6 | Active | €353,000 | €2,942 | 40.5% | 74 | 73 |
| Median comp | €545,000 | €4,936 | 0.2% | 75 | 74 |
Short-term vacation rental The €875,000 listing for this 3-bed apartment in Ferragudo is significantly overpriced, with a fair value of only €353,994, creating a staggering gap of 59.5%. Given the 2.6% gross yield, pursuing this strategy would not deliver a reasonable return in the context of the seasonal tourism demand in the Algarve. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unattractive due to its 59.5% premium over fair value at €875,000. The yield of 2.6% combined with a condition rating of 84/100 does not justify the high entry price in a marketplace impacted by seasonal variability. Family rental At €875,000, the apartment is overpriced when compared to its fair value of €353,994, resulting in a 59.5% gap that raises concerns about potential returns for a family rental strategy. The gross yield of 2.6% may not entice family renters, particularly given the area's economic pressures and the property's elevated price point.
Economic Vulnerability With an economic stability score of 65/100, there is a significant risk of economic downturn impacting rental demand and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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