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.
5-bedroom, 3-bathroom house of 250 m², built in 1984, energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a versatile studio behind the garage, ideal for a home office or guest accommodation, and boasts a large garden with various fruit trees for added charm and utility.
The valuation. The asking price of €700,000 is significantly above the fair value of €509,661, indicating an overvaluation of €190,339 or 37.3%. This property should not be considered a deal due to its excessive asking price.
Fair value modelled at €509,661 from 6 comparable sales in the area. Asking €700,000 sits €190,339 (37.3%) above — overpriced versus fair value.
Asking €700,000 versus the Ferragudo, Lagoa, Faro area baseline of €683,400 (€2,734/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 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 €683,400, adjusted for condition and micro-location, gives a modelled fair value of €509,661 (€2,039/m²), a €190,339 (37.3%) gap versus the €700,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · f14bce | Subject | €700,000 | €2,800 | — | 62 | 74 |
| Estômbar e Parchal · f5ead8 | Active | €485,000 | €2,401 | 14.3% | 68 | 76 |
| rua Capitão Teófilo Duarte | Active | €290,000 | €1,676 | 40.1% | 55 | 65 |
| Estômbar e Parchal · 875161 | Active | €449,000 | €2,993 | 6.9% | 72 | 72 |
| Portimão · 956a7a | Active | €725,000 | €948 | 66.2% | 74 | 72 |
| Median comp | €467,000 | €2,039 | 27.2% | 70 | 72 |
Short-term vacation rental The property is priced at €700,000, which exceeds the fair value of €509,661 by 37.3%, indicating it is not a prudent choice for a vacation rental investment. With a gross yield of only 3.9%, the high entry price compromises potential returns in this tourist-heavy area. Buy-and-hold With a significant gap from fair value and a relatively low neighborhood quality score of 74/100, holding this property long-term poses considerable financial risk. Investors may find that the 3.9% gross yield does not justify the above-market purchase price in an economy heavily reliant on tourism. Long-term rental The long-term rental market may not be favorable for a property valued at €700,000 against a fair valuation of €509,661, indicating it's overpriced by 37.3%. Furthermore, with a condition score of 64/100, ongoing maintenance costs could further erode profitability, making this investment less attractive for long-term rental prospects.
Economic Sensitivity Risk The economic stability score of 65/100 indicates potential vulnerability to market fluctuations that could impact tenant stability, currently rated at 69/100.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
