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, 3-bathroom house of 150 m², built in 2013, energy rating B. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This residence not only boasts a remote-controlled climate system but also offers two distinct outdoor social spaces, enhancing both relaxation and entertainment opportunities.
The valuation. The asking price of €625,000 is significantly above fair value at €514,540, resulting in a discrepancy of €110,460, or 21.5%. This property is considered overpriced in the current market context.
Fair value modelled at €514,540 from 6 comparable sales in the area. Asking €625,000 sits €110,460 (21.5%) above — overpriced versus fair value.
Asking €625,000 versus the Ferragudo, Lagoa, Faro area baseline of €535,269 (€3,568/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €535,269, adjusted for condition and micro-location, gives a modelled fair value of €514,540 (€3,430/m²), a €110,460 (21.5%) gap versus the €625,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 19084b | Subject | €625,000 | €4,167 | — | 76 | 61 |
| rua Doutor Manuel Bentes | Active | €900,000 | €5,806 | 39.4% | 75 | 63 |
| Portimão · 82c856 | Active | €650,000 | €2,025 | 51.4% | 70 | 70 |
| Estômbar e Parchal · 6ebb1c | Active | €735,000 | €4,742 | 13.8% | 80 | 74 |
| Ferragudo · 956e09 | Active | €850,000 | €3,025 | 27.4% | 75 | 64 |
| Median comp | €792,500 | €3,884 | 6.8% | 75 | 67 |
Short-term vacation rental The property's current listing price of €625,000 reflects a significant 21.5% gap above its fair value of €514,540, positioning it as an overpriced opportunity in the lucrative vacation rental market of Ferragudo, Lagoa. With a gross yield of 3.4%, the investment may not provide the desired returns given the property’s high cost relative to its potential income. Buy-and-hold Investing in this property as a buy-and-hold strategy would be challenging due to its valuation of €625,000, which is 21.5% above the fair value of €514,540, rendering it overpriced for long-term retention. This overpricing limits potential capital appreciation and makes it less attractive for long-term investments compared to other options in the Algarve. Long-term rental At €625,000, this property is overpriced by 21.5% relative to its fair value of €514,540, which constrains its viability for long-term rental strategies aimed at consistent yield generation. With a gross yield of only 3.4%, the property does not present an attractive rental return compared to its elevated purchase price.
Economic Sensitivity Risk With an economic stability score of 60/100 and a tenant stability score of 55/100, there is a heightened risk of economic fluctuations impacting tenant retention and 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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