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.
2-bedroom, 2-bathroom house of 99 m², built in 1988, energy rating E. Located Silves parish, Silves municipality, Faro district. Noteworthy features: This property boasts a beautiful marble staircase and a private terrace with a barbecue, perfect for enjoying the outdoors and Algarve's warm climate.
The valuation. The asking price of €260,000 is significantly above fair value, which stands at €167,339, resulting in an overpriced status of €92,661 (35.6%). Decisions should prioritize value over inflated pricing.
Fair value modelled at €167,339 from the area baseline, adjusted for condition and location. Asking €260,000 sits €92,661 (35.6%) above — overpriced versus fair value.
Asking €260,000 versus the Silves, Silves, Faro area baseline of €169,983 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 (Condition 66 · Materials 60 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Silves, Silves, Faro
Area baseline €169,983 + condition -€16,242 + location +€13,599 = modelled fair value of €167,339 (€1,690/m²), a €92,661 (35.6%) gap versus the €260,000 asking price.
Short-term vacation rental This property is overpriced by 35.6% compared to its fair value of €167,339, limiting its attractiveness as a short-term vacation rental in the tourist-heavy Algarve. With a gross yield of only 5.1% and a condition rating of 65/100, the return on investment may not justify the initial acquisition cost. Buy-and-hold Given its 35.6% gap from fair value, acquiring this property for a buy-and-hold strategy poses significant financial risks, particularly as the market may not support future appreciation. The combination of a modest yield and subpar condition ratings suggests that this investment could lead to stagnant or negative returns over time. Family rental With the property priced significantly above fair value, the potential to secure reliable long-term tenants for a family rental seems limited, especially in a market demanding better value. The current gross yield of 5.1% does not sufficiently compensate for the high purchase cost, making it an unsuitable option for families seeking cost-effective living arrangements.
Economic volatility risk The economic stability score of 60/100 indicates a potentially unstable market environment that may impact property values and rental income.
