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, 2-bathroom house of 112 m², built in 1952, energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. This property includes an approved project, allowing immediate commencement of reconstruction while blending modern design with the historic charm of Ferragudo's main square.
The valuation. The asking price of €299,000 significantly exceeds the fair value of €80,284, indicating a discrepancy of €218,716 (73.1%). This valuation suggests the property is overpriced.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · be95cb | Subject | €299,000 | €2,670 | — | — | 75 |
| Estômbar e Parchal · 911655 | Active | €1,575,000 | €6,702 | 151.0% | 54 | 61 |
| Estômbar e Parchal · b7c206 | Active | €800,000 | €6,667 | 149.7% | — | 79 |
| Estômbar e Parchal · 9385aa | Active | €1,870,000 | €3,740 | 40.1% | — | 76 |
| Lagoa e Carvoeiro · f35f4c | Active | €615,000 | €3,968 | 48.6% | 60 | 71 |
| Median comp | €1,187,500 | €5,318 | 99.2% | 57 | 74 |
Short-term vacation rental With a considerable gap of 73.1% above fair value, the potential for profitability in the short-term vacation rental market becomes questionable. The property’s gross yield of 5.7% does not justify the inflated listing price in a competitive tourism environment. Buy-and-hold Given that the property's valuation is 73.1% higher than its fair value, long-term capital appreciation may not materialize as expected. Holding onto this property could yield suboptimal returns given the current market conditions and property condition ratings. Long-term rental Despite a gross yield of 5.7%, the substantial valuation gap indicates the property is not positioned for successful long-term rental performance. Tenant stability and demand in the short-term vacation market will not be enough to offset the overpricing in the current listing. Not ideal for: Student housing, Industrial development The significant overvaluation and the property’s condition suggest it is not suited for student housing or industrial development, which typically require more reliable value and condition metrics.
Economic Volatility Risk The property faces a moderate level of economic volatility with a score of 65/100, indicating potential fluctuations in the local economy that could impact 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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