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.
4-bedroom, 2-bathroom villa of 447 m², built in 1987, energy rating D. Located on urbanização da Hortinha, 5, Ferragudo parish, Lagoa municipality, Faro district. This villa features a spacious detached T1 apartment in the basement, ideal for rental income or guest accommodation, enhancing its versatility for various living arrangements.
The valuation. The asking price of €990,000 sits 5.5% below the fair value of €1,047,673, indicating a reasonable valuation for this property. This reflects a fair position in the current market, aligned with its overall features and location.
Fair value modelled at €1,047,673 from 6 comparable sales in the area. Asking €990,000 sits €57,673 (5.5%) below — the upside to fair value.
Asking €990,000 versus the urbanização da Hortinha, 5 area baseline of €1,360,939 (€3,045/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 €1,360,939, adjusted for condition and micro-location, gives a modelled fair value of €1,047,673 (€2,344/m²), a €57,673 (5.5%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização da Hortinha, 5 | Subject | €990,000 | €2,215 | — | 66 | 64 |
| Ferragudo · f14bce | Active | €700,000 | €2,800 | 26.4% | 62 | 74 |
| Portimão · 5ecf7a | Active | €375,000 | €2,287 | 3.2% | 62 | 75 |
| Estômbar e Parchal · f5ead8 | Active | €485,000 | €2,401 | 8.4% | 68 | 76 |
| rua Cidade de Gôa, 1 | Active | €685,000 | €2,095 | 5.4% | 66 | 75 |
| Median comp | €585,000 | €2,344 | 5.8% | 64 | 75 |
Short-term vacation rental Given the property’s fair market valuation, it may not provide sufficient yield at a gross rate of 0% in a seasonal tourist market. The fluctuating demand for vacation rentals in Ferragudo introduces additional risk, suggesting this strategy could underperform financially. Long-term rental With a gap of 5.5% from fair value, this property might struggle to attract stable long-term tenants given its current condition and neighborhood ratings. The 0% gross yield indicates that relying on long-term rental income could be less favorable for the investor. Buy-and-hold While the fair valuation of the villa suggests it aligns with market expectations, its mediocre condition and neighborhood scores may hinder appreciation over time. This strategy could lead to a stagnant investment given the lack of yield and the need for potential renovations. Not ideal for: Student housing is not a fitting strategy due to the location’s tourist-focused amenities and seasonal demand variability. The luxury market segment is also an unsuitable target, as the property does not significantly stand out among higher-end offerings in the area.
Economic Vulnerability The property's economic stability score of 55 indicates a potential risk of market fluctuations affecting 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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