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, 4-bathroom apartment of 257 m², built in 2017, energy rating A. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment's outdoor spaces offer a beautifully designed garden area with direct access to the pool, enhancing both privacy and leisure opportunities for residents.
The valuation. The asking price of €2,500,000 sits at €1,025,066 (69.5%) above the fair value of €1,474,934, indicating that the property is overpriced. This significant discrepancy suggests a potential hurdle for prospective buyers. Buy-to-flip angle. The resale strategy focuses on renovating to enhance appeal and targeting affluent buyers, maximizing returns on investment through an elevation of the property's perceived value. With high-grade materials, the potential for a profitable flip exists. Buy-to-let angle. A rental income strategy may include short-term vacation rentals, leveraging the attractive Algarve location for sustained income, although the current gross yield of 0% indicates no immediate revenue potential.
Fair value modelled at €1,474,934 from 6 comparable sales in the area. Asking €2,500,000 sits €1,025,066 (69.5%) above — overpriced versus fair value.
Asking €2,500,000 versus the Ferragudo, Lagoa, Faro area baseline of €1,457,077 (€5,670/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 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 €1,457,077, adjusted for condition and micro-location, gives a modelled fair value of €1,474,934 (€5,739/m²), a €1,025,066 (69.5%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · e554bb | Subject | €2,500,000 | €9,728 | — | 90 | 72 |
| Ferragudo · 28ba61 | Active | €2,500,000 | €29,070 | 198.8% | 85 | 74 |
| Portimão · 1625d1 | Active | €1,275,000 | €11,087 | 14.0% | 80 | 71 |
| Portimão · 6229bd | Active | €959,000 | €4,701 | 51.7% | 90 | 71 |
| Portimão · 86ca05 | Active | €959,000 | €4,701 | 51.7% | 90 | 74 |
| Median comp | €1,117,000 | €7,894 | 18.8% | 88 | 73 |
Short-term vacation rental The potential for generating short-term rental income in Ferragudo is diminished by the property's significant price gap, indicating it is overpriced at €2,500,000 with no expected yield. This high purchase price fails to align with the area's tourist-driven economy and could hinder profitability. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its 69.5% premium over fair value of €1,474,934, suggesting that the long-term appreciation potential is unlikely to justify the inflated entry cost. The absence of any gross yield further complicates this strategy, making it a less attractive option. Family rental While family rentals may see consistent demand in Ferragudo, the current listing price of €2,500,000 is significantly above fair value and offers no yield, positioning it as an overpriced choice in the residential market. This high entry price, along with the neighborhood rating of 72/100, may inhibit rental performance and tenant quality over time.
Below average economic conditions The economic stability score of 65/100 indicates a potential risk of economic downturns that may impact tenant demand and rental income.
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