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, 2-bathroom villa of 70 m², built in 2022, energy rating E. Located Armação de Pêra parish, Silves municipality, Faro district. This villa features a spacious en-suite bedroom on the upper floor, ensuring resident privacy while being just steps away from Armação de Pêra's beautiful beach and local amenities.
The valuation. The asking price of €398,000 sits significantly above the fair value of €136,083, representing a discrepancy of €261,917 or 65.8%. This property is overpriced based on current market conditions.
Fair value modelled at €136,083 from the area baseline, adjusted for condition and location. Asking €398,000 sits €261,917 (65.8%) above — overpriced versus fair value.
Asking €398,000 versus the Armação de Pêra, Silves, Faro area baseline of €120,190 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · 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 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €120,190 + condition +€5,797 + location +€10,096 = modelled fair value of €136,083 (€1,944/m²), a €261,917 (65.8%) gap versus the €398,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 6d54d1 | Subject | €398,000 | €5,686 | — | 78 | 71 |
| rua António Mascarenhas Cochado, 2 | Active | €450,000 | €4,688 | 17.6% | 75 | 70 |
| rua José Moura Lapa | Active | €247,000 | €4,843 | 14.8% | 75 | 74 |
| rua 20 de Junho | Active | €275,000 | €3,481 | 38.8% | 80 | 70 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 50.4% | 65 | 73 |
| Median comp | €277,000 | €4,085 | 28.2% | 75 | 72 |
Short-term vacation rental The current listing price of €398,000 significantly exceeds the fair value of €136,083, indicating that the property is overpriced for a short-term rental strategy. With a gross yield of only 2.2%, the high entry cost would limit potential returns in a market driven by seasonal tourism. Long-term rental At €398,000, the villa is overpriced compared to its fair value of €136,083, making it less appealing for long-term rental investment. The expected yield of 2.2% does not justify the high purchase price, given the economic reliance on seasonal tourism in the area. Buy-and-hold The villa's current price of €398,000, which is 65.8% above the fair value of €136,083, suggests it is overpriced for a buy-and-hold strategy. Given the low yield of 2.2% and the market dynamics in Armação de Pêra, long-term value appreciation is unlikely to compensate for the initial overinvestment.
Economic Vulnerability The economic stability score of 65/100 indicates potential vulnerabilities in the local economy that could impact rental income and property value.
