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 134 m², built in 2008. Located on urbanização da Grandlinha, 11, Ferragudo parish, Lagoa municipality, Faro district. This property features two private terraces overlooking the pool, providing ideal spaces for relaxation and outdoor entertainment.
The valuation. The asking price of €518,000 is slightly above the fair value of €501,988, reflecting a premium of €16,012 (3.2%). This indicates the property is fairly priced in the current market. Buy-to-flip angle. The potential resale strategy focuses on making aesthetic upgrades to appeal to buyers seeking modern finishes which would optimize the return and capitalize on the strong demand in the Algarve region. Buy-to-let angle. A buy-to-let strategy could generate a gross yield of 2.6% with estimated monthly rental income of €1,122, leveraging the area's strong tourism and expat market for potential family or short-term vacation rentals.
Fair value modelled at €501,988 from 6 comparable sales in the area. Asking €518,000 sits €16,012 (3.2%) above — overpriced versus fair value.
Asking €518,000 versus the urbanização da Grandlinha, 11 area baseline of €524,643 (€3,915/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 is below the parish average, reducing 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 €524,643, adjusted for condition and micro-location, gives a modelled fair value of €501,988 (€3,746/m²), a €16,012 (3.2%) gap versus the €518,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização da Grandlinha, 11 | Subject | €518,000 | €3,866 | — | 74 | 76 |
| Estômbar e Parchal · 438ff7 | Active | €380,000 | €4,471 | 15.6% | 75 | 67 |
| urbanização António Joaquim Duarte, 23 | Active | €390,000 | €2,708 | 29.9% | 68 | 74 |
| Ferragudo · 4a44c4 | Active | €535,000 | €4,496 | 16.3% | — | 75 |
| Ferragudo · 19084b | Active | €625,000 | €4,167 | 7.8% | 76 | 61 |
| Median comp | €462,500 | €4,319 | 11.7% | 75 | 71 |
Short-term vacation rental Given its prime location in the Algarve region, this property has strong potential for a short-term vacation rental strategy, appealing to both tourists and expatriates. However, with a gross yield of 2.6%, the return may not justify the investment at its current listing price of €518,000, which is above its fair value. Buy-and-hold The property stands at a fair value, making it a potentially reasonable long-term investment, but the modest yield of 2.6% suggests limited upside for appreciation in a competitive market. With a strong tourism demand, the buy-and-hold strategy could be viable, though the current price leaves little room for significant profitability. Family rental The property’s decent condition and neighborhood ratings indicate suitability for family rentals; however, the current pricing reflects a slight premium over fair value. The anticipated demand from families in the Algarve may provide consistent occupancy, but the 2.6% yield highlights a challenge in covering expenses compared to ideal investment opportunities.
Economic and Tenant Stability Risk: With both scores at 70/100, there is moderate risk that economic downturns or tenant turnover could impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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