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 apartment of 31 m² on the 1st floor, built in 1974, energy rating D. Located Armação de Pêra parish, Silves municipality, Faro district. This property features a compact balcony that overlooks a quiet street, providing a cozy outdoor space for relaxation in the vibrant heart of Armação de Pêra.
The valuation. The asking price of €198,500 is significantly above the fair value of €137,521, representing an overpricing of €60,979 (44.3%). This discrepancy suggests that the property is not aligned with current market valuations.
Fair value modelled at €137,521 from 6 comparable sales in the area. Asking €198,500 sits €60,979 (44.3%) above — overpriced versus fair value.
Asking €198,500 versus the Armação de Pêra, Silves, Faro area baseline of €127,257 (€4,105/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 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 €127,257, adjusted for condition and micro-location, gives a modelled fair value of €137,521 (€4,436/m²), a €60,979 (44.3%) gap versus the €198,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · f14e23 | Subject | €198,500 | €6,403 | — | 70 | 69 |
| Armação de Pêra · 6c779f | Active | €189,000 | €5,727 | 10.6% | 66 | 70 |
| rua General Humberto Delgado | Active | €215,000 | €4,135 | 35.4% | 64 | 71 |
| rua das Embarcações, 8A | Active | €289,000 | €4,738 | 26.0% | 65 | 69 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 56.0% | 65 | 73 |
| Median comp | €247,000 | €4,437 | 30.7% | 65 | 71 |
Short-term vacation rental This property presents a 44.3% premium over its fair value, indicating that it may not attract significant demand in the highly competitive short-term vacation rental market. With a gross yield of only 4.5% and a neighborhood score of 69/100, the returns may not justify the initial investment. Value-add renovation While a value-add renovation strategy could potentially enhance the property's appeal, the significant overpricing poses a risk that could hinder the return on investment. Given the current fair value assessment, the renovation costs may exceed the potential increase in property value in a market already showing signs of saturation. Buy-and-hold Acquiring this property as a buy-and-hold investment could yield long-term challenges, especially considering its fair value is notably lower than the listing price. The seasonal variations in the Algarve region suggest that potential rental income may not be consistent enough to offset the elevated purchase price. Not ideal for: This property is unsuitable for student housing, the luxury market, or long-term rental due to its price structure and the local economic conditions.
Economic Vulnerability The economic stability score of 55/100 indicates a potential risk of fluctuations in the local economy that could impact property value and tenant 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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