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 €507,060 (€3,756/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 €507,060 + 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.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
