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.
0-bedroom, 0-bathroom house of 812 m². Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Feature: This property includes three independent studios and a spacious autonomous apartment, all with sea views, enhancing its potential for hosting guests or generating rental income.
The valuation. The asking price of €3,850,000 significantly exceeds the fair value of €1,596,087, resulting in a disparity of €2,253,913 (58.5%). This property is therefore considered overpriced. Buy-to-flip angle. A resale strategy could involve targeted renovations to enhance appeal, with the goal of flipping the property at a higher price within a year. The current luxury finishes ensure a strong market presence post-renovation. Buy-to-let angle. Given the location’s tourism demand, a buy-to-let strategy focusing on short-term vacation rentals could generate substantial income. However, the gross yield is currently estimated at 0%, indicating an initial cash flow challenge.
Fair value modelled at €1,596,087 from the area baseline, adjusted for condition and location. Asking €3,850,000 sits €2,253,913 (58.5%) above — overpriced versus fair value.
Asking €3,850,000 versus the Ferragudo, Lagoa, Faro area baseline of €3,057,180 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 92/100 (Condition 89 · Materials 93 · Room dimensions 92). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €3,057,180 + condition +€101,500 + location +€100,383 = modelled fair value of €1,596,087 (€1,966/m²), a €2,253,913 (58.5%) gap versus the €3,850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 6c79c9 | Subject | €3,850,000 | €4,741 | — | 89 | 68 |
| Ferragudo · 02420a | Active | €535,000 | €4,496 | 5.2% | 75 | 70 |
| rua 16 de Maio | Active | €355,000 | €5,000 | 5.5% | 75 | 75 |
| rua de Francisco Duarte | Active | €320,000 | €4,000 | 15.6% | 75 | 70 |
| rua Infante Santo, 1 | Active | €535,000 | €4,496 | 5.2% | 75 | 72 |
| Median comp | €445,000 | €4,496 | 5.2% | 75 | 71 |
Short-term vacation rental The property is priced at €3,850,000, significantly exceeding its fair value of €1,596,087, indicating it is overpriced by 58.5%. The lack of a gross yield makes this investment particularly unattractive in the short-term vacation rental market, where returns are critical. Buy-and-hold At a listing price of €3,850,000, this property is overpriced compared to the fair value of €1,596,087, representing a significant gap of 58.5%. Given the overall high price and 0% yield, it is unlikely to generate positive cash flow over time, making long-term hold strategies less appealing. Family rental With the property priced at €3,850,000 against a fair value of €1,596,087, it is clear that the listing is overpriced by 58.5%. The lack of potential yield further complicates its viability for family rentals, which typically require more competitive pricing to attract tenants.
Potential Decline in Occupancy Low economic and tenant stability scores of 60/100 indicate a risk of decreased demand, potentially leading to higher vacancy rates and reduced rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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