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.
1-bedroom, 1-bathroom apartment of 89 m², energy rating C. Located on urbanização Vila Nova, Armação de Pêra parish, Silves municipality, Faro district. Noteworthy features: This apartment boasts a generous balcony with direct access from the living area, providing additional outdoor space for relaxation in a peaceful residential setting.
The valuation. The asking price of €323,000 is significantly higher than the fair value of €165,927, resulting in an overpriced status of €157,073 (48.6% overvaluation). This discrepancy suggests limited potential for value-driven investment.
Fair value modelled at €165,927 from the area baseline, adjusted for condition and location. Asking €323,000 sits €157,073 (48.6%) above — overpriced versus fair value.
Asking €323,000 versus the urbanização Vila Nova area baseline of €334,284 (€3,756/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 75 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 68 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Vila Nova
Area baseline €334,284 + condition +€278 + location +€12,836 = modelled fair value of €165,927 (€1,864/m²), a €157,073 (48.6%) gap versus the €323,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Vila Nova | Subject | €323,000 | €3,629 | — | 72 | 71 |
| rua Bartolomeu Dias | Active | €341,000 | €3,747 | 3.3% | 73 | 71 |
| beco Casino Velho S / N | Active | €265,000 | €3,897 | 7.4% | 75 | 72 |
| rua 20 de Junho | Active | €275,000 | €3,481 | 4.1% | 80 | 70 |
| avenida Beira Mar, 9 | Active | €400,000 | €6,250 | 72.2% | 75 | 67 |
| Median comp | €308,000 | €3,822 | 5.3% | 75 | 71 |
Short-term vacation rental While the property could generate consistent income with a gross yield of 3.5%, its listing price of €323,000 is significantly above the fair value of €165,927. Therefore, the current market gap of 48.6% indicates that this investment may not provide a competitive return relative to its cost. Long-term rental This apartment's yield of 3.5% might appeal to long-term investors seeking stable income, but the substantial price overvaluation poses risks for profitability. With a fair value of €165,927 and a significant gap, the potential for rental yield is likely diminished due to the high entry cost. Buy-and-hold Though the neighborhood enjoys typical Algarve tourism appeal and low crime rates, the investment's high initial price of €323,000 compared to its fair value of €165,927 suggests the property is overpriced. Consequently, the long-term appreciation potential appears limited given the considerable disparity between market and fair values.
Economic Vulnerability With an economic stability score of 68/100, there is a moderate risk of economic downturns impacting rental demand and property values. Tenant Stability Risk With a tenant stability score of 70/100, there is concern about potential turnover and vacancy rates that could lead to unstable cash flow.
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