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 65 m², energy rating D. Located Silves parish, Silves municipality, Faro district. This apartment features a private balcony that enhances outdoor living space and offers picturesque views typical of the Algarve region, appealing to tourists and renters alike.
The valuation. The asking price of €298,000 significantly exceeds the fair value of €191,704, indicating the property is overpriced by €106,296 (55.4%). This places the investment at substantial risk to buyers seeking equity. Buy-to-flip angle. A resale strategy focused on renovating this 2-bed apartment could attract buyers looking for updated features; however, considering the current price, potential profits might be limited due to the high upfront cost. Buy-to-let angle. Given the €298,000 asking price with a gross yield of 0%, the long-term rental strategy may struggle to justify the investment. The seasonal tourism in Algarve complicates stable rental income forecasts for potential landlords.
Fair value modelled at €191,704 from 6 comparable sales in the area. Asking €298,000 sits €106,296 (55.4%) above — overpriced versus fair value.
Asking €298,000 versus the Silves, Silves, Faro area baseline of €170,911 (€2,629/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €170,911, adjusted for condition and micro-location, gives a modelled fair value of €191,704 (€2,949/m²), a €106,296 (55.4%) gap versus the €298,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Silves · 3d998d | Subject | €298,000 | €4,585 | — | 64 | 65 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 38.5% | 65 | 73 |
| Portimão · 956ee1 | Active | €222,000 | €2,921 | 36.3% | 68 | 73 |
| Portimão · 261d9d | Active | €222,000 | €2,883 | 37.1% | 65 | 76 |
| rua das Olarias | Active | €255,000 | €3,000 | 34.6% | 63 | 79 |
| Median comp | €238,500 | €2,902 | 36.7% | 65 | 75 |
Short-term vacation rental Given the current listing price of €298,000, which is 55.4% above the fair value, this property presents a significant financial risk for short-term vacation rental strategies. The 0% gross yield further underscores the challenges in achieving a sustainable income from this investment in Silves. Long-term rental With a fair value of only €191,704, this 2-bed apartment is overpriced for long-term rental considerations, especially noting the lack of yield and moderate property condition of 62/100. The investment may struggle to attract quality tenants due to the inflated pricing and a neighborhood rating of 65/100. Family rental At a listing price significantly above fair value, the prospect of converting this property into a family rental is financially disadvantageous. The prevailing market conditions in Silves do not support a justification for such an investment at this price point, especially considering the overall property condition and yield aspects.
Economic Risk The economic stability score of 55/100 suggests a potential risk of downturns affecting rental income and property value in the long term.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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