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 studio of 44 m², built in 2008. Located Armação de Pêra parish, Silves municipality, Faro district. This studio features a spacious balcony perfect for outdoor relaxation, and is nestled within a private condominium that includes an exclusive playground for residents.
The valuation. The asking price of €275,000 significantly exceeds the fair value of €80,642, indicating it is overpriced by €194,358, or 70.7%. This places it out of reach for value-seeking investors. Buy-to-flip angle. A purchase with the intent to renovate and resell could be challenging due to the high initial cost, making a swift profit unlikely in this market. The significant premium over fair value may limit buyer interest. Buy-to-let angle. While the estimated rental income of €756/month provides a gross yield of 3.3%, the property's overpricing could hinder rental performance compared to better-valued properties in the area. Seasonal fluctuations further complicate stable rental income.
Fair value modelled at €80,642 from the area baseline, adjusted for condition and location. Asking €275,000 sits €194,358 (70.7%) above — overpriced versus fair value.
Asking €275,000 versus the Armação de Pêra, Silves, Faro area baseline of €160,776 (€3,654/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 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Armação de Pêra, Silves, Faro
Area baseline €160,776 + condition -€1,856 + location +€6,950 = modelled fair value of €80,642 (€1,833/m²), a €194,358 (70.7%) gap versus the €275,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · be949e | Subject | €275,000 | €6,250 | — | 70 | 73 |
| urbanização Vila Nova | Active | €323,000 | €3,629 | 41.9% | 72 | 71 |
| Porches · 6fbc1a | Active | €310,000 | €3,690 | 41.0% | 80 | 74 |
| beco Casino Velho S / N | Active | €265,000 | €3,897 | 37.6% | 75 | 72 |
| rua Bartolomeu Dias | Active | €341,000 | €3,747 | 40.0% | 73 | 71 |
| Median comp | €316,500 | €3,719 | 40.5% | 74 | 72 |
Short-term vacation rental This property is overpriced, with a fair value of €80,642 compared to the listing price of €275,000, which indicates a significant 70.7% gap. Given its gross yield of only 3.3% and the impact of seasonality on tourism in Armação de Pêra, pursuing a short-term rental strategy would be financially unviable. Buy-and-hold Investing in this property as a buy-and-hold strategy does not make sense due to its high listing price of €275,000 against a fair value of only €80,642, revealing a concerning 70.7% overvaluation. The rental yield of 3.3% and the economic dynamics in the area further suggest that a long-term hold would not yield satisfactory returns. Family rental The property is overpriced at €275,000, far exceeding its fair value of €80,642, resulting in a 70.7% discrepancy. Considering the yield of just 3.3% and the area's seasonality, investing in family rental is likely to be a poor decision in terms of potential income and market stability.
Potential Vacancy Risk Due to a moderate Economic stability score of 65 and a Tenant stability score of 70, there is a risk that tenant turnover may increase, potentially leading to higher vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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