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.
6-bedroom, 4-bathroom house of 665 m², built in 1998, energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes two separate 3-bedroom apartments, offering potential rental income or multi-generational living options, and has a spacious basement that enhances versatility.
The valuation. The asking price of €568,000 sits significantly below the fair value of €1,456,811, representing an underpricing of €888,811 (61.0%). This position suggests a compelling opportunity for potential investors.
Fair value modelled at €1,456,811 from 6 comparable sales in the area. Asking €568,000 sits €888,811 (61.0%) below — the upside to fair value.
Asking €568,000 versus the Ferragudo, Lagoa, Faro area baseline of €2,224,741 (€3,345/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 52/100 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 €2,224,741, adjusted for condition and micro-location, gives a modelled fair value of €1,456,811 (€2,191/m²), a €888,811 (61.0%) gap versus the €568,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · a803f2 | Subject | €568,000 | €854 | — | 54 | 73 |
| Estômbar e Parchal · 833f3e | Active | €568,000 | €854 | 0% | 60 | 66 |
| Ferragudo · f14bce | Active | €700,000 | €2,800 | 227.8% | 62 | 74 |
| rua Capitão Teófilo Duarte | Active | €290,000 | €1,676 | 96.3% | 55 | 65 |
| rua Cidade de Gôa, 1 | Active | €685,000 | €2,095 | 145.3% | 66 | 75 |
| Median comp | €626,500 | €1,886 | 120.7% | 61 | 70 |
Short-term vacation rental The property in Ferragudo presents a unique opportunity for short-term vacation rentals given its strategic location near the Algarve coast in a tourism-centric economy. With a fair value 61% higher than the listing price of €568,000, this house is poised for appreciation as demand for holiday accommodations continues to rise. Buy-and-hold The significant gap between the listing price and fair value indicates strong potential for long-term appreciation in Ferragudo. Investing in this property could yield substantial returns as the market adjusts towards its intrinsic value of €1,456,811. Long-term rental While the gross yield is currently at 0%, the considerable undervaluation of the property suggests that, in time, it could become a favorable long-term rental investment. As the neighborhood continues to attract tourists, securing a long-term tenant could result in a lucrative cash flow post-acquisition.
Potential Economic Downturn The economic stability score of 68 suggests a moderate risk of downturn, which could affect rental income and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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