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, 3-bathroom apartment of 171 m², built in 2018, energy rating A. Located Ferragudo parish, Lagoa municipality, Faro district. Noteworthy Features: This apartment boasts an expansive terrace perfectly oriented for breathtaking south-facing sunsets over the Atlantic, complemented by a private heated infinity pool for year-round enjoyment.
The valuation. The asking price of €2,500,000 is significantly above fair value, which is estimated at €803,868, placing it at a staggering 211.0% premium. This property is clearly overpriced and does not present a sound investment opportunity.
Fair value modelled at €803,868 from 6 comparable sales in the area. Asking €2,500,000 sits €1,696,132 (211.0%) above — overpriced versus fair value.
Asking €2,500,000 versus the Ferragudo, Lagoa, Faro area baseline of €807,817 (€4,724/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €807,817, adjusted for condition and micro-location, gives a modelled fair value of €803,868 (€4,701/m²), a €1,696,132 (211.0%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferragudo · 07fbc6 | Subject | €2,500,000 | €14,620 | — | 92 | 63 |
| Ferragudo · 28ba61 | Active | €2,500,000 | €29,070 | 98.8% | 85 | 74 |
| Portimão · 82c82c | Active | €540,000 | €3,273 | 77.6% | 73 | 73 |
| Portimão · 6229bd | Active | €959,000 | €4,701 | 67.8% | 90 | 71 |
| Ferragudo · e554bb | Active | €2,500,000 | €9,728 | 33.5% | 90 | 72 |
| Median comp | €1,729,500 | €7,215 | 50.7% | 88 | 73 |
Short-term vacation rental The property is priced significantly above its fair value, resulting in an untenable yield of 0% gross, which is unsustainable for a short-term vacation rental. Despite its proximity to the Algarve coastline, the pricing diminishes its appeal in a competitive tourism market. Buy-and-hold With a staggering 211.0% gap versus fair value, the investment in this 3-bed apartment fails to offer any potential for appreciation over time, making it an unattractive buy-and-hold option. The combination of high price and low yield suggests that long-term investment in this property is not advisable. Family rental This property’s asking price does not align with the current neighborhood market dynamics, rendering it overpriced for a family rental situation. While conditions may be acceptable at 85/100, the exorbitant cost undermines its viability for families seeking affordable housing options.
Moderate Economic Uncertainty With an economic stability score of 55/100, there is a moderate risk that adverse economic conditions may lead to fluctuations in tenant demand and rental income.
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