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 90 m², energy rating B. Located on rua da Porta do Sol, 3, Silves parish, Silves municipality, Faro district. This apartment features two expansive balconies that enhance indoor-outdoor living, perfect for enjoying the Algarve's warm climate, along with rare cross-ventilation enhancing comfort.
The valuation. The asking price of €430,000 is significantly above the fair value of €171,304, representing an overpricing of €258,696 or 60.2%. This discrepancy suggests a cautionary approach for potential investors.
Fair value modelled at €171,304 from the area baseline, adjusted for condition and location. Asking €430,000 sits €258,696 (60.2%) above — overpriced versus fair value.
Asking €430,000 versus the rua da Porta do Sol, 3 area baseline of €154,530 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 76 · Materials 80 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Porta do Sol, 3
Area baseline €154,530 + condition +€703 + location +€16,071 = modelled fair value of €171,304 (€1,903/m²), a €258,696 (60.2%) gap versus the €430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Porta do Sol, 3 | Subject | €430,000 | €4,778 | — | 76 | 76 |
| rua da Porta do Sol, 3 | Active | €430,000 | €4,778 | 0% | 80 | 72 |
| rua Cruz de Portugal S / N | Active | €295,000 | €3,352 | 29.8% | 78 | 63 |
| rua da Hortelã, 119 | Active | €295,000 | €2,092 | 56.2% | 70 | 71 |
| Silves · f35ea5 | Active | €295,000 | €2,757 | 42.3% | 78 | 67 |
| Median comp | €295,000 | €3,055 | 36.1% | 78 | 69 |
Short-term vacation rental The property's current price of €430,000 significantly exceeds its fair value of €171,304, representing a 60.2% gap, indicating that it is overpriced for a short-term vacation rental strategy. Given the gross yield of 2.2%, the potential return on investment is not attractive compared to the risks involved in managing vacation rentals in a saturated tourist market like Silves. Long-term rental With a listing price of €430,000 far above the fair value of €171,304, this property is overpriced for a long-term rental investment strategy as well. The low gross yield of 2.2% does not compensate for the significant premium over fair market value and market pressures in the Algarve region. Buy-and-hold Although Silves is an appealing area for buy-and-hold strategies due to its low crime rates and good educational facilities, the current price of €430,000 against a fair value of €171,304 indicates that the property is overpriced. Investors should be cautious, as the unsustainable valuation results in a gross yield of only 2.2%, limiting long-term financial growth potential in the area.
Economic Vulnerability The property faces potential risks due to a moderate economic stability score of 65, indicating economic fluctuations could impact tenant retention and rental income.
