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 apartment of 120 m². Located Armação de Pêra parish, Silves municipality, Faro district. The apartment features spacious balconies with unobstructed views and is part of a high-quality condominium with a swimming pool and secure parking, enhancing its appeal for leisure living.
The valuation. The asking price of €398,000 is significantly above the fair value of €199,012, making this property overpriced by €198,988 or 50.0%. This pricing gap suggests that potential investors should tread cautiously before considering purchase.
Fair value modelled at €199,012 from the area baseline, adjusted for condition and location. Asking €398,000 sits €198,988 (50.0%) above — overpriced versus fair value.
Asking €398,000 versus the Armação de Pêra, Silves, Faro area baseline of €206,040 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 (Condition 65 · Materials 60 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €206,040 + condition -€22,688 + location +€15,659 = modelled fair value of €199,012 (€1,658/m²), a €198,988 (50.0%) gap versus the €398,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · ac994f | Subject | €398,000 | €3,317 | — | 65 | 69 |
| rua Quinta da Saudade, 6 | Active | €310,000 | €3,875 | 16.8% | — | 73 |
| Porches · 6fb82b | Active | €325,000 | €3,037 | 8.4% | 70 | 68 |
| avenida dos Oceanos | Active | €345,000 | €2,654 | 20.0% | 75 | 63 |
| Armação de Pêra · cfe1dc | Active | €215,990 | €4,075 | 22.9% | 65 | 71 |
| Median comp | €317,500 | €3,456 | 4.2% | 70 | 70 |
Short-term vacation rental The property’s listing price of €398,000 significantly exceeds its fair value of €199,012, indicating that the potential return may not justify the investment. Given the 3.6% gross yield, the income generated from short-term rentals in a tourist-driven region does not sufficiently compensate for the substantial overvaluation. Buy-and-hold Investing in this property as a buy-and-hold strategy may not be advisable due to its 50.0% gap from fair value, making it challenging to achieve long-term appreciation. While the condition and neighborhood ratings are decent, the severe overpricing undermines the potential for creating a profitable, appreciating asset. Family rental Acquiring this property for family rental purposes faces significant challenges, as its current price is well above fair value. The yield of 3.6% is insufficient to support the ongoing costs, making the investment less attractive for families seeking quality housing in the Algarve's competitive market.
Inadequate Economic Growth The property faces potential challenges due to a lower economic stability score of 60/100, indicating less favorable market conditions that may affect rental income and property value.
