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, 1-bathroom apartment of 135 m², built in 2006. Located Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Feature: This apartment includes pleasant private balconies ideal for outdoor leisure, enhancing the living experience with additional space for relaxation or entertainment.
The valuation. The asking price of €405,000 is significantly above the fair value of €248,484, indicating an overpriced property by €156,516 (38.6%). This discrepancy raises concerns about potential overinvestment. Buy-to-flip angle. A buy-to-flip strategy may not yield favorable returns given the current market valuation; the high purchase price dampens profit potential for resale. Buy-to-let angle. The property offers short-term vacation rental potential, yet the gross yield is 0%, suggesting no immediate rental income. Long-term rental may provide some stability but would require price negotiation.
Fair value modelled at €248,484 from the area baseline, adjusted for condition and location. Asking €405,000 sits €156,516 (38.6%) above — overpriced versus fair value.
Asking €405,000 versus the Armação de Pêra, Silves, Faro area baseline of €231,795 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €231,795 + condition +€0 + location +€16,689 = modelled fair value of €248,484 (€1,841/m²), a €156,516 (38.6%) gap versus the €405,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 1e60bc | Subject | €405,000 | €3,000 | — | 72 | 68 |
| Porches · 6fbc1a | Active | €310,000 | €3,690 | 23.0% | 80 | 74 |
| avenida Beira Mar, 9 | Active | €400,000 | €6,250 | 108.3% | 75 | 67 |
| rua das Embarcações, 8 | Active | €450,000 | €4,639 | 54.6% | 76 | 73 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 6.1% | 65 | 73 |
| Median comp | €355,000 | €4,165 | 38.8% | 76 | 73 |
Short-term vacation rental The property is positioned in a tourist-oriented area of Algarve, which is typically favorable for vacation rentals; however, its listing price of €405,000 represents a 38.6% gap from its fair value of €248,484. With a gross yield of 0%, this investment would likely struggle to generate a profitable return for short-term rentals, indicating it is overpriced for this strategy. Buy-and-hold Given the current market dynamics and the fair value assessment, purchasing this property for a buy-and-hold strategy appears unattractive; at €405,000, the investment exceeds its justified value by 38.6%. Additionally, the property’s condition score of 75/100 and neighborhood rating of 68/100 do not support potential appreciation needed for a successful buy-and-hold. Long-term rental The long-term rental feasibility of the property is diminished due to its overvaluation at €405,000, which is significantly above the calculated fair value of €248,484. With a zero gross yield and a neighborhood quality rating of 68/100, the property is unlikely to provide adequate cash flow or tenant demand necessary for a long-term rental strategy.
Moderate Economic Risk With an economic stability score of 55/100, this property faces potential challenges in investment viability due to less favorable economic conditions that may impact tenant retention and rental revenue.
