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, 3-bathroom house of 218 m², built in 2006, energy rating C. Located Ferragudo parish, Lagoa municipality, Faro district. This semi-detached villa features two separate entrances and a flexible layout with an independent studio space, ideal for accommodating guests or additional family members.
The valuation. The asking price of €725,000 is significantly above the fair value of €422,573, creating a discrepancy of €302,427 (41.7%). This property is clearly overpriced.
Fair value modelled at €422,573 from the area baseline, adjusted for condition and location. Asking €725,000 sits €302,427 (41.7%) above — overpriced versus fair value.
Asking €725,000 versus the Ferragudo, Lagoa, Faro area baseline of €820,770 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 76 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €820,770 + condition +€15,328 + location +€32,939 = modelled fair value of €422,573 (€1,938/m²), a €302,427 (41.7%) gap versus the €725,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 6c7944 | Subject | €725,000 | €3,326 | — | 76 | 72 |
| Estômbar e Parchal · 956ab9 | Active | €1,195,000 | €4,878 | 46.7% | 70 | 70 |
| Estômbar e Parchal · 735450 | Active | €1,350,000 | €5,947 | 78.8% | 78 | 72 |
| rua 16 de Maio | Active | €355,000 | €5,000 | 50.3% | 75 | 75 |
| Estômbar e Parchal · de0c2c | Active | €375,000 | €2,404 | 27.7% | 80 | 72 |
| Median comp | €785,000 | €4,939 | 48.5% | 77 | 72 |
Short-term vacation rental This property is overpriced at €725,000 compared to a fair value of €422,573, leading to a significant gap of 41.7%. Given the yield is currently at 0%, this investment lacks immediate cash flow potential in the vacation rental market. Buy-and-hold With a fair value considerably lower than the listing price, this property at €725,000 is not positioned as a sound long-term buy-and-hold investment. The lack of cash flow, combined with significant price overvaluation, suggests that holding this asset will not yield favorable returns. Long-term rental At €725,000, the property exceeds the fair value by 41.7%, making it a poor candidate for a long-term rental strategy. The property's zero gross yield further illustrates that this investment does not offer immediate income generation potential or sustainable growth prospects.
Moderate Economic Risk The property has a moderate economic stability score of 65/100, indicating potential fluctuations in the local market that could impact investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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