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 duplex of 144 m², energy rating B. Located Armação de Pêra parish, Silves municipality, Faro district. The upper floor’s large private roof terrace offers panoramic views of the surrounding area, enhancing the outdoor living experience and providing a perfect space for entertaining.
The valuation. The asking price of €525,000 is significantly above the fair value of €283,903, representing an excessive 45.9% markup. This property is deemed overpriced, making immediate investment less attractive.
Fair value modelled at €283,903 from the area baseline, adjusted for condition and location. Asking €525,000 sits €241,097 (45.9%) above — overpriced versus fair value.
Asking €525,000 versus the Armação de Pêra, Silves, Faro area baseline of €247,248 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €247,248 + condition +€16,875 + location +€19,780 = modelled fair value of €283,903 (€1,972/m²), a €241,097 (45.9%) gap versus the €525,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 6d5498 | Subject | €525,000 | €3,646 | — | 80 | 70 |
| rua das Embarcações, 8 | Active | €450,000 | €4,639 | 27.2% | 76 | 73 |
| Porches · 6fb82b | Active | €325,000 | €3,037 | 16.7% | 70 | 68 |
| avenida dos Oceanos | Active | €345,000 | €2,654 | 27.2% | 75 | 63 |
| rua da Boca da Alagoa S / N | Active | €630,000 | €4,013 | 10.1% | 75 | 75 |
| Median comp | €397,500 | €3,525 | 3.3% | 75 | 71 |
Short-term vacation rental Despite the strong tourist appeal typical of the Algarve, the property's listing price of €525,000 reflects an inflated valuation, significantly above its estimated fair value of €283,903. With a gross yield of only 3.2%, the potential returns do not justify the current asking price in the short-term rental market. Long-term rental Given the €525,000 listing price, the investment does not align with the fundamentals of the long-term rental market, where the fair value of €283,903 indicates that the property is overpriced. The gross yield of 3.2% further underscores the mismatch between rental income potential and acquisition cost, making it a less attractive option for long-term renting. Buy-and-hold Investing in this property for a buy-and-hold strategy presents significant risks due to its valuation at €525,000, which is well above the fair value of €283,903. This discrepancy suggests that over time, holding such an overpriced asset may yield disappointing returns in comparison to the investment required.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to downturns, which could affect rental income and property value.
