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 house of 255 m², built in 2009, energy rating C. Located Silves parish, Silves municipality, Faro district. This property includes a unique marquee balcony converted into a gym, offering panoramic views, and features well-maintained photovoltaic panels enhancing energy efficiency.
The valuation. The asking price of €795,000 is significantly above fair value at €492,399, indicating an overvaluation of €302,601 (38.1%). This suggests that the property is overpriced and may not yield a favorable return for investors. Buy-to-flip angle. The buy-to-flip strategy may be challenging given the property’s overpriced status; however, cosmetic improvements could position it for a quicker resale depending on market dynamics. Targeting a more competitive price could attract potential buyers interested in renovated spaces. Buy-to-let angle. Given the property’s location in Algarve, a short-term vacation rental strategy could be implemented, although the current gross yield is estimated at 0%. This presents a risk for long-term buy-and-hold investors due to the unappealing cash flow.
Fair value modelled at €453,746 from the area baseline, adjusted for condition and location. Asking €795,000 sits €341,254 (42.9%) above — overpriced versus fair value.
Asking €795,000 versus the Silves, Silves, Faro area baseline of €437,835 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 75 · Materials 78 · Room dimensions 67). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Silves, Silves, Faro
Area baseline €437,835 + condition -€10,359 + location +€26,270 = modelled fair value of €453,746 (€1,779/m²), a €341,254 (42.9%) gap versus the €795,000 asking price.
Short-term vacation rental The property’s asking price of €795,000 is significantly above its fair value of €492,399, marking a 38.1% gap, which makes it less attractive for a short-term vacation rental strategy. Additionally, with a gross yield of 0% and only a condition score of 72/100, the investment may not generate sufficient returns in a competitive tourist market. Buy-and-hold At a price of €795,000, the property is overpriced compared to the fair value of €492,399, which presents a 38.1% discrepancy that could hinder long-term capital appreciation. The neighborhood's decent condition score of 65/100 does not compensate for the overall poor yield and high entry price, making it an unfavorable buy-and-hold opportunity. Family rental Given its overpriced listing and a fair value of €492,399, the property at €795,000 does not align with the typical rental market rates, negatively impacting its viability as a family rental investment. Moreover, with a gross yield of 0% and a condition rating of 72/100, the property may struggle to attract long-term tenants, particularly in a tourist-heavy area like Silves.
Economic vulnerability With an economic stability score of 60/100 and a tenant stability score of 65/100, there is a heightened risk of fluctuating income and potential vacancies due to overall economic uncertainty in the area.
