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 penthouse of 178 m² on the 5th floor, energy rating F. Located Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: This penthouse includes a complete outdoor kitchen and pergola on its expansive 80m² terrace, providing an exceptional space for entertaining with panoramic sea views.
The valuation. The asking price of €410,000 is significantly below the fair value of €579,412, presenting a discount of €169,412 (29.2%). This property is considered to be underpriced in the current market. Buy-to-flip angle. This penthouse presents an excellent opportunity for a buy-to-flip strategy, given its appealing condition and location. By making cosmetic updates, resale at a premium could yield substantial profits in this desirable market. Buy-to-let angle. With an estimated gross yield of 4.9%, renting the property for approximately €1,674 per month offers a steady income stream. The strong demand for both long-term and short-term rentals in Algarve further supports this investment strategy.
Fair value modelled at €579,412 from 6 comparable sales in the area. Asking €410,000 sits €169,412 (29.2%) below — the upside to fair value.
Asking €410,000 versus the Armação de Pêra, Silves, Faro area baseline of €487,267 (€2,737/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 is above the parish average, lifting 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 €487,267, adjusted for condition and micro-location, gives a modelled fair value of €579,412 (€3,255/m²), a €169,412 (29.2%) gap versus the €410,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 190891 | Subject | €410,000 | €2,303 | — | 70 | 74 |
| Alcantarilha e Pêra · f46cd8 | Active | €410,000 | €2,950 | 28.1% | 76 | 77 |
| rua do Barlavento | Active | €440,000 | €2,750 | 19.4% | 72 | 74 |
| rua Projectada 8365-145, 3 | Active | €235,000 | €3,561 | 54.6% | 65 | 74 |
| rua Quinta das Palmeiras, 3C | Active | €309,000 | €4,120 | 78.9% | — | 73 |
| Median comp | €359,500 | €3,256 | 41.3% | 72 | 74 |
Short-term vacation rental This penthouse presents an attractive opportunity for short-term vacation rentals, especially given its 4.9% gross yield and the 29.2% gap compared to its fair value. The robust tourist appeal of the Algarve makes this property a promising choice for rental income during peak seasons. Long-term rental With a fair value assessment substantially higher than the listing price, this property is positioned to attract long-term tenants looking for quality accommodations in a desirable location. The adequate condition rating of 76/100 supports the potential for steady rental income in a robust housing market. Buy-and-hold Investing in this penthouse aligns well with a buy-and-hold strategy, given its current pricing and the strong likelihood of market appreciation in a sought-after tourist area. The substantial difference to fair value suggests significant upside potential over time, making it a strategic addition to any real estate portfolio.
Economic Vulnerability The property’s economic stability score of 65/100 indicates potential vulnerabilities to market fluctuations, which may affect long-term investment returns.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Sign in to buy the report or use a credit
