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.
3-bedroom, 1-bathroom house of 123 m², built in 1995, energy rating E. Located Silves parish, Silves municipality, Faro district. This property features a charming backyard ideal for outdoor relaxation, along with original architectural details that enhance its unique character in the historic center of Silves.
The valuation. The asking price of €280,000 sits €60,290 (21.5%) above the fair value of €219,710, indicating the property is overpriced. This discrepancy raises concerns for potential investors looking for a fair market entry point.
Fair value modelled at €219,710 from the area baseline, adjusted for condition and location. Asking €280,000 sits €60,290 (21.5%) above — overpriced versus fair value.
Asking €280,000 versus the Silves, Silves, Faro area baseline of €316,602 (€2,574/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 73). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 66/100 (Housing Market 78 · Amenities 65 · Economic 52 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Silves, Silves, Faro
Area baseline €316,602 + condition -€4,997 + location +€13,516 = modelled fair value of €219,710 (€1,786/m²), a €60,290 (21.5%) gap versus the €280,000 asking price.
Short-term vacation rental While Silves benefits from its Algarve location and strong tourist appeal, the property’s current listing price of €280,000 represents an overpricing of 21.5% against the fair value of €219,710, diminishing the potential for profitable returns. Additionally, the property’s condition score of 72/100 suggests it may require updates that could further reduce returns in the competitive vacation rental market. Long-term rental The property’s gross yield of 5.2% is decent; however, the overpricing issue at €280,000 results in an unrealistic investment return given its fair value of €219,710. With the neighbourhood scoring only 66/100, attracting reliable long-term tenants may be challenging amidst seasonal fluctuations in tourism demand. Buy-and-hold Investing in this property as a buy-and-hold strategy is unadvisable due to the significant overpricing of 21.5%, as it does not align with the fair value of €219,710. As the housing market relies heavily on tourist cycles, the potential for appreciation may be limited given its current price point and condition rating of 72/100.
Economic Vulnerability: The economic stability score of 52 indicates a moderate risk, suggesting potential fluctuations in rental income due to unstable market conditions. Tenant Stability: The tenant stability score of 70 supports a relatively reliable tenant base; however, 30% of tenants may be less stable during economic downturns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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