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, 2-bathroom house of 104 m², energy rating C. Located on urbanização da Cerca, Alcantarilha e Pêra parish, Silves municipality, Faro district. Noteworthy Feature: The property includes a spacious rooftop terrace with a pergola, offering a serene space for outdoor dining and glimpses of the sea over rooftops.
The valuation. The asking price of €469,000 is substantially above the fair value of €383,712, indicating an overpriced property by €85,288 (22.2%). This implies that potential buyers should negotiate aggressively or seek other opportunities.
Fair value modelled at €383,712 from 6 comparable sales in the area. Asking €469,000 sits €85,288 (22.2%) above — overpriced versus fair value.
Asking €469,000 versus the urbanização da Cerca area baseline of €353,528 (€3,399/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €353,528, adjusted for condition and micro-location, gives a modelled fair value of €383,712 (€3,690/m²), a €85,288 (22.2%) gap versus the €469,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização da Cerca | Subject | €469,000 | €4,510 | — | 74 | 70 |
| Alcantarilha e Pêra · 911411 | Active | €325,000 | €3,779 | 16.2% | 70 | 71 |
| Alcantarilha e Pêra · 4b97ce | Active | €318,000 | €2,650 | 41.2% | 72 | 70 |
| urbanização Morgado Lameira, 16 | Active | €1,100,000 | €5,641 | 25.1% | 85 | 70 |
| Alcantarilha e Pêra · 225c44 | Active | €630,000 | €3,600 | 20.2% | 65 | 72 |
| Median comp | €477,500 | €3,690 | 18.2% | 71 | 71 |
Short-term vacation rental The property is currently overpriced at €469,000 compared to a fair value of €383,712, representing a 22.2% gap. Given the high demand for short-term vacation rentals in the Algarve, potential operators might face challenges achieving desired yields with a gross yield of only 3.1%. Buy-and-hold With a fair value significantly lower than the asking price, the investment in this property appears misguided as it is overpriced at €469,000. The moderate gross yield of 3.1% further complicates the long-term appreciation prospects, suggesting that holding this asset may not yield satisfactory returns. Family rental The property's current listing price makes it less attractive for family rental purposes, given that it is overpriced relative to its fair value. Although the location in the Algarve has amenities suitable for families, the high investment cost may deter potential renters from choosing this property. Not ideal for: Student housing Given its current market value exceeding the fair benchmark, this property is not suitable for student housing investments. The combination of high costs and average tenant quality in the area limits potential returns in this segment.
Economic Vulnerability With an economic stability score of 60/100, this property faces potential risks due to possible fluctuations in the local economy that may affect rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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