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 apartment of 100 m² on the 3rd floor, built in 1999, energy rating C. Located Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: The property includes a spacious terrace with partial sea views, ideal for outdoor dining and relaxation, along with easy access to local amenities and the beach.
The valuation. The asking price of €375,000 sits significantly above the fair value of €279,439, reflecting an overpricing of €95,561 (34.2%). This disparity suggests limited potential for immediate investment gains.
Fair value modelled at €279,439 from 6 comparable sales in the area. Asking €375,000 sits €95,561 (34.2%) above — overpriced versus fair value.
Asking €375,000 versus the Armação de Pêra, Silves, Faro area baseline of €238,040 (€2,380/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €238,040, adjusted for condition and micro-location, gives a modelled fair value of €279,439 (€2,794/m²), a €95,561 (34.2%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · f14d96 | Subject | €375,000 | €3,750 | — | 75 | 70 |
| rua Quinta dos Arcos, 1 | Active | €330,000 | €3,511 | 6.4% | 70 | 74 |
| Armação de Pêra · 19087b | Active | €320,000 | €2,645 | 29.5% | 72 | 73 |
| rua Projectada 8365-145, 3 | Active | €235,000 | €3,561 | 5.1% | 65 | 74 |
| rua das Caravelas | Active | €285,000 | €2,767 | 26.2% | 76 | 72 |
| Median comp | €302,500 | €3,139 | 16.3% | 71 | 74 |
Short-term vacation rental The property, with a gross yield of 3.6%, is unlikely to attract the desired revenue from short-term vacation rentals given its 34.2% gap over fair value. Moreover, the listing price of €375,000 does not align with the economic-driven demands of the Algarve tourist region. Buy-and-hold Investing in this property for a buy-and-hold strategy could be problematic, as its current price is 34.2% above its fair value of €279,439. The combination of a weak gross yield of 3.6% and the neighborhood's average ratings suggest that long-term appreciation is not assured. Value-add renovation While value-add renovations could improve the property’s condition rating of 69/100, the significant gap to fair value means that any additional investment may not lead to a suitable return. The high price of €375,000 poses a risk that the renovation costs will not yield commensurate increases in value, leaving this strategy less viable under current market conditions.
Moderate economic and tenant risk The property has a moderate economic stability score of 65/100 and a tenant stability score of 65/100, indicating potential challenges in attracting and retaining tenants, which could affect 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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