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.
1-bedroom, 1-bathroom apartment of 54 m², built in 1992, energy rating D. Located Armação de Pêra parish, Silves municipality, Faro district. Noteworthy features: The apartment includes a balcony with a sea view, enhancing its appeal for holidaymakers or renters seeking a coastal lifestyle. Additional context: Located just meters from Armação de Pêra Beach, it offers easy access to local amenities.
The valuation. The asking price of €262,500 significantly exceeds the fair value of €103,089, representing an overvaluation of €159,411 (60.7%). This discrepancy indicates that the property is overpriced and unlikely to yield a favorable return on investment.
Fair value modelled at €103,089 from the area baseline, adjusted for condition and location. Asking €262,500 sits €159,411 (60.7%) above — overpriced versus fair value.
Asking €262,500 versus the Armação de Pêra, Silves, Faro area baseline of €197,316 (€3,654/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €197,316 + condition +€2,953 + location +€7,417 = modelled fair value of €103,089 (€1,909/m²), a €159,411 (60.7%) gap versus the €262,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 28b9c1 | Subject | €262,500 | €4,861 | — | 75 | 70 |
| rua José Moura Lapa | Active | €247,000 | €4,843 | 0.4% | 75 | 74 |
| avenida Beira Mar, 9 | Active | €400,000 | €6,250 | 28.6% | 75 | 67 |
| rua 20 de Junho | Active | €275,000 | €3,481 | 28.4% | 80 | 70 |
| beco Casino Velho S / N | Active | €265,000 | €3,897 | 19.8% | 75 | 72 |
| Median comp | €270,000 | €4,370 | 10.1% | 75 | 71 |
Short-term vacation rental The property, although located in the tourist-friendly Algarve region, is overpriced with a listing price of €262,500 that significantly exceeds the fair value of €103,089. The gross yield of 3.8% does not offer an attractive return for vacation rental investors, especially given the market demands and seasonality of tourism. Long-term rental With a current valuation gap of 60.7%, this 1-bed apartment in Armação de Pêra is not positioned favorably for long-term rental strategies, as investors would be paying far above fair market value. The gross yield of 3.8% further confirms that the financial return does not justify the inflated asking price. Buy-and-hold Buying this apartment as a long-term hold is not advisable due to its significant overpricing; the fair value of €103,089 compared to the listing price indicates a poor investment opportunity. Additionally, the current yield of 3.8% does not align with what's typically expected in a buy-and-hold strategy, especially in a fluctuating market influenced by tourism.
Economic Volatility Risk The property's economic stability score of 65 suggests a moderate risk of economic downturns impacting tenant retention and rental income.
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