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 103 m², built in 2002, energy rating C. Located on rua das Caravelas, Armação de Pêra parish, Silves municipality, Faro district. This property includes a spacious south-facing balcony with a barbecue, perfect for outdoor dining, and conveniently features a basement garage for secure parking.
The valuation. The asking price of €285,000 is significantly above the fair value of €198,047, creating a discrepancy of €86,953 (30.5%). This property is considered overpriced. Buy-to-flip angle. A buy-to-flip strategy may be challenging given the property's current high price; potential resale margins could be slim. A renovation could improve returns, but substantial investment would be necessary. Buy-to-let angle. With an estimated rental income of €1,164/month, the gross yield stands at 4.9%. The apartment's location in a tourist-heavy zone supports strong demand for both short-term and long-term rentals.
Fair value modelled at €198,047 from the area baseline, adjusted for condition and location. Asking €285,000 sits €86,953 (30.5%) above — overpriced versus fair value.
Asking €285,000 versus the rua das Caravelas area baseline of €376,362 (€3,654/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 76 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua das Caravelas
Area baseline €376,362 + condition +€5,633 + location +€15,563 = modelled fair value of €198,047 (€1,923/m²), a €86,953 (30.5%) gap versus the €285,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Caravelas | Subject | €285,000 | €2,767 | — | 76 | 72 |
| rua do Barlavento | Active | €440,000 | €2,750 | 0.6% | 72 | 74 |
| rua das Embarcações, 8 | Active | €450,000 | €4,639 | 67.7% | 76 | 73 |
| avenida dos Oceanos | Active | €345,000 | €2,654 | 4.1% | 75 | 63 |
| rua Torre, 2 | Active | €360,000 | €2,927 | 5.8% | 70 | 66 |
| Median comp | €400,000 | €2,839 | 2.6% | 74 | 70 |
Short-term vacation rental The current listing price of €285,000 exceeds the fair value by 30.5%, which suggests that the potential yield of 4.9% gross may not justify the investment in this tourist-heavy zone. Given the economic reliance on tourism, the property could struggle to meet high demand expectations at its current price point. Long-term rental With the fair value at €198,047, the asking price indicates the property is overpriced, making it a less attractive option for long-term rental despite the location's housing demand. A high asking price may hinder obtaining quality tenants, as rental rates typically align closely with fair market values. Buy-and-hold The €285,000 valuation places this property significantly above its fair value, resulting in an inflated investment outlook that undermines potential returns. Holding onto an overpriced asset could entail greater risks, especially in a neighbourhood that is influenced by the fluctuations of the tourism sector.
Economic downturn risk A score of 65 in economic stability suggests potential vulnerability to adverse market conditions, which may affect the property's investment performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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