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, 1-bathroom apartment of 64 m², energy rating C. Located Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: This apartment boasts a generous private terrace that enhances its appeal and offers potential for outdoor enjoyment, perfect for coastal living in Armação de Pêra.
The valuation. The asking price of €390,000 is significantly above the fair value of €122,179, representing an excessive premium of €267,821 (68.7%). This property is classified as overpriced. Buy-to-flip angle. Given the high asking price, a buy-to-flip strategy would require substantial appreciation to yield profit, which seems unrealistic given the neighborhood dynamics. Quick resale at a favorable price may be challenging. Buy-to-let angle. The gross yield of 2.7% (~€878/month) is relatively low, indicating that the rental income strategy may not generate significant cash flow. Long-term rental prospects could be limited by the high purchase price in a competitive market.
Fair value modelled at €122,179 from the area baseline, adjusted for condition and location. Asking €390,000 sits €267,821 (68.7%) above — overpriced versus fair value.
Asking €390,000 versus the Armação de Pêra, Silves, Faro area baseline of €233,856 (€3,654/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 81 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €233,856 + condition +€3,500 + location +€8,791 = modelled fair value of €122,179 (€1,909/m²), a €267,821 (68.7%) gap versus the €390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · b7c2bb | Subject | €390,000 | €6,094 | — | 75 | 70 |
| Armação de Pêra · 1e60bc | Active | €405,000 | €3,000 | 50.8% | 72 | 68 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 53.8% | 65 | 73 |
| avenida Beira Mar, 9 | Active | €400,000 | €6,250 | 2.6% | 75 | 67 |
| Porches · 6fbc1a | Active | €310,000 | €3,690 | 39.4% | 80 | 74 |
| Median comp | €355,000 | €3,345 | 45.1% | 74 | 71 |
Long-term rental The property is overpriced at €390,000 compared to the fair value of €122,179, representing a 68.7% gap. With a gross yield of only 2.7%, the investment does not meet the return expectations typical for long-term rentals. Short-term vacation rental Considering the local demand driven by Algarve's status as a tourist hotspot, the property is still overpriced, lacking compelling financial metrics with a gross yield of just 2.7%. The disproportionate valuation issues compromise potential short-term rental profitability despite the appealing tourist market. Buy-and-hold The buy-and-hold strategy is not advisable here as the property is substantially overpriced, with a valuation gap of 68.7% against fair value. The low yield of 2.7% also indicates that this investment will likely yield less attractive returns over time, making it unsuitable for long-term wealth accumulation.
Economic Vulnerability A relatively low economic stability score of 60/100 may indicate potential fluctuations in market conditions that could impact property value and rental income.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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