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.
5-bedroom, 6-bathroom house of 388 m², built in 2015, energy rating B. Located on rua do Arco, São Bartolomeu de Messines parish, Silves municipality, Faro district. Noteworthy Features: The property boasts a private orchard with diverse fruit trees, and a heated pool integrated within beautifully landscaped gardens, offering an exceptional outdoor living experience.
The valuation. The asking price of €855,000 is notably higher than the fair value of €730,658, making it overpriced by €124,342 (14.5%). This raises concerns regarding its potential return on investment.
Fair value modelled at €730,658 from the area baseline, adjusted for condition and location. Asking €855,000 sits €124,342 (14.5%) above — overpriced versus fair value.
Asking €855,000 versus the rua do Arco area baseline of €666,196 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 66/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua do Arco
Area baseline €666,196 + condition +€21,825 + location +€42,637 = modelled fair value of €730,658 (€1,883/m²), a €124,342 (14.5%) gap versus the €855,000 asking price.
Short-term vacation rental The property is overpriced by 14.5% compared to its fair value, making it a less attractive option for investors seeking profitable vacation rental opportunities in the tourist-driven Algarve region. With a gross yield of 0%, it fails to provide any immediate return on investment, limiting its appeal in the competitive vacation rental market. Buy-and-hold Despite the attractive location in a low-crime tourist zone, the 14.5% gap from fair value indicates that this property does not present a compelling buy-and-hold opportunity at its current price. Overpriced at €855,000, the long-term appreciation potential is diminished, making it a risky investment in the current market. Long-term rental Given the property’s condition rating of 79/100 and a neighborhood score of 66/100, the 14.5% price premium creates hurdles for securing desirable long-term tenants. Failing to generate any gross yield at its asking price indicates that this property is not well-positioned for robust long-term rental success in the existing housing market.
Economic pressure risk With an economic stability score of 60/100 and a tenant stability score of 60/100, there is a heightened risk of economic fluctuations impacting tenant retention and rental income.
