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 123 m², built in 2008, energy rating D. Located on rua Torre, 2, Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: This apartment includes a unique closed box garage with additional storage, complementing its rare three parking spaces in a highly sought-after beachside location.
The valuation. The asking price of €360,000 sits significantly above the fair value of €221,824, representing an overpricing of €138,176 (38.4%). This property is not a viable option for investment based on its current valuation.
Fair value modelled at €221,824 from the area baseline, adjusted for condition and location. Asking €360,000 sits €138,176 (38.4%) above — overpriced versus fair value.
Asking €360,000 versus the rua Torre, 2 area baseline of €211,191 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 70 · Materials 75 · Room dimensions 78). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 66/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Torre, 2
Area baseline €211,191 + condition -€2,883 + location +€13,516 = modelled fair value of €221,824 (€1,803/m²), a €138,176 (38.4%) gap versus the €360,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Torre, 2 | Subject | €360,000 | €2,927 | — | 70 | 66 |
| rua Dom João II | Active | €449,000 | €3,535 | 20.8% | 72 | 75 |
| avenida dos Oceanos | Active | €345,000 | €2,654 | 9.3% | 75 | 63 |
| beco Casino Velho S / N | Active | €265,000 | €3,897 | 33.1% | 75 | 72 |
| rua 20 de Junho | Active | €275,000 | €3,481 | 18.9% | 80 | 70 |
| Median comp | €310,000 | €3,508 | 19.9% | 75 | 71 |
Short-term vacation rental The potential gross yield of 3.9% does not justify the property’s asking price of €360,000 given the fair value of €221,824, indicating that it is overpriced. Additionally, the seasonal nature of Armação de Pêra’s tourism may lead to inconsistent rental income streams, further complicating this investment strategy. Buy-and-hold Investing in this 2-bed apartment as a buy-and-hold strategy is not advisable, as the property is priced significantly above its fair value, creating a high barrier to future returns. With a fair value gap of 38.4%, the likelihood of achieving reliable appreciation over time is diminished, making this property less attractive for long-term investment. Value-add renovation Pursuing a value-add renovation strategy is complicated by the fact that this property is already overpriced at €360,000 relative to its fair value of €221,824. Even with potential for improvements, the initial purchase price limits the viability of unlocking significant additional value in the market. Not ideal for Given the property’s overpriced position, it is not suitable as student housing or for the luxury market, where the expectations for value and rental returns are high. Additionally, converting it for family rental use would likely yield unsatisfactory results, given the neighborhood's lower tenant quality and amenities availability.
Economic Volatility Risk Given the economic stability score of 60/100, there is a significant risk that economic fluctuations could negatively impact rental income. Tenant Stability Risk A tenant stability score of 65/100 indicates a moderate risk of tenant turnover, potentially leading to increased vacancy rates and loss of revenue.
