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.
3-bedroom, 2-bathroom apartment of 145 m² on the 1st floor, built in 2010, energy rating B. Located on rua Infante Dom Henrique, 3, Ferragudo parish, Lagoa municipality, Faro district. This apartment features a 46m² private terrace overlooking the Arade River, ideal for enjoying serene sunset views and entertaining friends in a tranquil setting.
The valuation. The asking price of €470,000 is significantly above the fair value of €396,540, resulting in an excess of €73,460 (18.5%). This property is considered overpriced.
Fair value modelled at €396,540 from 6 comparable sales in the area. Asking €470,000 sits €73,460 (18.5%) above — overpriced versus fair value.
Asking €470,000 versus the rua Infante Dom Henrique, 3 area baseline of €421,821 (€2,909/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 is above the parish average, lifting 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 €421,821, adjusted for condition and micro-location, gives a modelled fair value of €396,540 (€2,735/m²), a €73,460 (18.5%) gap versus the €470,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Infante Dom Henrique, 3 | Subject | €470,000 | €3,241 | — | 78 | 77 |
| Portimão · 1f3429 | Active | €565,000 | €3,038 | 6.3% | 73 | 77 |
| Portimão · fb292b | Active | €560,000 | €2,605 | 19.6% | 78 | 71 |
| Portimão · 8ee91c | Active | €479,000 | €2,508 | 22.6% | 75 | 71 |
| Portimão · 6228cd | Active | €420,000 | €2,039 | 37.1% | 75 | 68 |
| Median comp | €519,500 | €2,557 | 21.1% | 75 | 71 |
Short-term vacation rental The property is overpriced at €470,000, compared to a fair value of €396,540, indicating a significant gap of 18.5%. Although the Algarve is a prime tourist destination, the gross yield of 3.2% does not support the high listing price for a short-term vacation rental opportunity. Long-term rental With a listing price that exceeds fair value by 18.5%, this property is not an advantageous option for long-term rentals. The 3.2% gross yield coupled with the property's condition and neighborhood ratings point to better investment opportunities elsewhere. Buy-and-hold Given the overpricing at €470,000, this property does not align with the buy-and-hold investment strategy as potential appreciation is compromised. The coastal location may attract some interest, but the yield and valuation metrics suggest that this property lacks the financial foundation for long-term growth. Not ideal for This property is not suitable for student housing, industrial commercial space, or the luxury market given its pricing and yield profile.
Economic Downturn Risk A moderate economic stability score of 75/100 suggests potential vulnerability to downturns, which may impact tenant stability at the current score of 70/100.
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