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.
1-bedroom, 1-bathroom townhouse of 98 m², built in 1971, energy rating B. Located Ferragudo parish, Lagoa municipality, Faro district. This townhouse features a spacious east-facing terrace with stunning sea views and is surrounded by lush Mediterranean vegetation, enhancing its serene outdoor living experience.
The valuation. The asking price of €369,000 sits 3.5% below the fair value of €382,205, indicating that the property is appropriately priced. This valuation reflects a market-consistent assessment, providing a solid foundation for investment consideration.
Fair value modelled at €382,205 from 6 comparable sales in the area. Asking €369,000 sits €13,205 (3.5%) below — the upside to fair value.
Asking €369,000 versus the Ferragudo, Lagoa, Faro area baseline of €374,400 (€3,820/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €374,400, adjusted for condition and micro-location, gives a modelled fair value of €382,205 (€3,900/m²), a €13,205 (3.5%) gap versus the €369,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 831242 | Subject | €369,000 | €3,765 | — | 75 | 74 |
| urbanização da Grandlinha, 11 | Active | €518,000 | €3,866 | 2.7% | 74 | 76 |
| rua do Oceano Índico, 24 | Active | €240,000 | €3,934 | 4.5% | 72 | 68 |
| Ferragudo · 4a44c4 | Active | €535,000 | €4,496 | 19.4% | — | 75 |
| Ferragudo · 19084b | Active | €625,000 | €4,167 | 10.7% | 76 | 61 |
| Median comp | €526,500 | €4,051 | 7.6% | 74 | 72 |
Short-term vacation rental The property in Ferragudo presents a fair opportunity for short-term vacation rentals with a potential gross yield of 3.6%. Given that the area thrives on tourism, this strategy can attract seasonal visitors while aligning closely with the market dynamics. Long-term rental A long-term rental strategy appears feasible with this 1-bed townhouse offering a competitive gross yield of 3.6%. Even though the property is priced fairly at €369,000, potential long-term tenants may find the living space appealing, given its condition and the neighborhood's amenities. Buy-and-hold Adopting a buy-and-hold strategy could prove reasonable as the property is priced at €369,000, which is aligned with its fair value of €382,205. The established tourism economy in Algarve supports long-term appreciation potential, making it a suitable candidate for holding over time.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of market fluctuations impacting 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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