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, 1-bathroom apartment of 89 m² on the 1st floor, energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The apartment includes a spacious double garage of approximately 60 m², perfect for customization as a cinema room or game room, enhancing its versatility for lifestyle needs.
The valuation. The asking price of €395,000 is significantly above the fair value of €164,061, indicating an overvaluation of €230,939 (58.5%). This price discrepancy suggests caution for potential investors.
Fair value modelled at €164,061 from the area baseline, adjusted for condition and location. Asking €395,000 sits €230,939 (58.5%) above — overpriced versus fair value.
Asking €395,000 versus the Ferragudo, Lagoa, Faro area baseline of €335,085 (€3,765/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 75/100 (Housing Market 85 · Amenities 75 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferragudo, Lagoa, Faro
Area baseline €335,085 + condition -€4,033 + location +€15,281 = modelled fair value of €164,061 (€1,843/m²), a €230,939 (58.5%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · be91f0 | Subject | €395,000 | €4,438 | — | 70 | 75 |
| rua Agosto Azul | Active | €405,000 | €4,451 | 0.3% | 68 | 73 |
| Portimão · f35fee | Active | €259,500 | €3,327 | 25.0% | 72 | 76 |
| avenida Tomás Cabreira | Active | €325,000 | €4,392 | 1.0% | 70 | 71 |
| rua Marechal Gomes da Costa, 13 | Active | €249,500 | €3,327 | 25.0% | 72 | 70 |
| Median comp | €292,250 | €3,860 | 13.0% | 71 | 72 |
Short-term vacation rental Given the €395,000 listing price and a fair value of €164,061, this property is overpriced by 58.5%, limiting its attractiveness for short-term rental yields. With a gross yield of 3.8%, the financial return does not justify the elevated purchase price in a competitive market. Long-term rental The excessive listing price compared to the fair value suggests that this 2-bed apartment does not present a favorable opportunity for long-term rental investment. At a gross yield of 3.8%, the rental income potential is insufficient to offset the inflated initial cost. Family rental As a family rental, this property is overpriced relative to its fair value, making it difficult to achieve sustainable occupancy rates at the proposed price point. The lack of alignment between market price and fair valuation could deter families seeking affordable housing options in the area.
Economic and Tenant Instability Risk With both economic and tenant stability scores at 70/100, there is a significant risk of fluctuating income and potential vacancy challenges in the future, impacting returns.
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