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, 4-bathroom house of 250 m², energy rating D. Located Ferragudo parish, Lagoa municipality, Faro district. Terraces provide ample outdoor living space while the garden area offers extensive potential for landscaping and a future swimming pool, enhancing the property's overall appeal and value.
The valuation. The asking price of €700,000 is significantly above the fair value of €523,700, reflecting a premium of €176,300 (33.7%). This indicates that the property is overpriced and does not present a strong investment opportunity at its current asking price.
Fair value modelled at €523,700 from 5 comparable sales in the area. Asking €700,000 sits €176,300 (33.7%) above — overpriced versus fair value.
Asking €700,000 versus the Ferragudo, Lagoa, Faro area baseline of €681,793 (€2,727/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 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 €681,793, adjusted for condition and micro-location, gives a modelled fair value of €523,700 (€2,095/m²), a €176,300 (33.7%) gap versus the €700,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 5b865b | Subject | €700,000 | €2,800 | — | 60 | 71 |
| Portimão · 5ecf7a | Active | €375,000 | €2,287 | 18.3% | 62 | 75 |
| Estômbar e Parchal · 833f3e | Active | €568,000 | €854 | 69.5% | 60 | 66 |
| rua Cidade de Gôa, 1 | Active | €685,000 | €2,095 | 25.2% | 66 | 75 |
| Ferragudo · a803f2 | Active | €568,000 | €854 | 69.5% | 54 | 73 |
| Median comp | €568,000 | €1,475 | 47.3% | 61 | 74 |
Short-term vacation rental Despite being located in a popular tourist destination that increases housing demand, the property is overpriced by 33.7% compared to its fair value, which diminishes its attractiveness for vacation rentals. Its gross yield of 3.9% reflects the strain of the inflated price, likely resulting in lower profitability for investors. Long-term rental While the property is situated in a desirable area that supports tourism and enhances livability, its current listing price significantly exceeds the fair value, making it unappealing for long-term rental investment. The yield of 3.9% indicates a lack of competitive rental returns due to the overly high purchase price. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable due to its 33.7% overpricing against fair value, which can limit both asset appreciation and cash flow. The combination of a lower yield and a mediocre property condition further undermines its long-term potential as a reliable investment.
Economic Volatility Risk The economic stability score of 65/100 indicates potential vulnerability to market fluctuations that could negatively impact property value and tenant demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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