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 118 m², energy rating C. Located Armação de Pêra parish, Silves municipality, Faro district. This apartment features two balconies with sea views and is located just steps away from the beach promenade, enhancing its appeal as a premier coastal residence.
The valuation. The asking price of €399,000 is €18,203 (4.4%) below the fair value of €417,203, making this property fairly priced in the current market context. Buy-to-flip angle. A short-term vacation rental strategy could yield attractive returns, leveraging the Algarve’s strong tourist appeal for profitability. Buy-to-let angle. With an estimated monthly rental income of €1,164, the property could generate a gross yield of approximately 3.5%, providing steady cash flow for long-term investment.
Fair value modelled at €417,203 from 6 comparable sales in the area. Asking €399,000 sits €18,203 (4.4%) below — the upside to fair value.
Asking €399,000 versus the Armação de Pêra, Silves, Faro area baseline of €390,294 (€3,308/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €390,294, adjusted for condition and micro-location, gives a modelled fair value of €417,203 (€3,536/m²), a €18,203 (4.4%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · cbc039 | Subject | €399,000 | €3,381 | — | 68 | 76 |
| Armação de Pêra · f14d96 | Active | €375,000 | €3,750 | 10.9% | 75 | 70 |
| Armação de Pêra · 19087b | Active | €320,000 | €2,645 | 21.8% | 72 | 73 |
| rua Projectada 8365-145, 3 | Active | €235,000 | €3,561 | 5.3% | 65 | 74 |
| rua Quinta dos Arcos, 1 | Active | €330,000 | €3,511 | 3.8% | 70 | 74 |
| Median comp | €325,000 | €3,536 | 4.6% | 71 | 74 |
Short-term vacation rental The property's proximity to tourist-heavy areas in Algarve coupled with a gross yield of 3.5% suggests it can perform reasonably well as a vacation rental. However, given the fair market value is slightly above the listing price, potential investors should consider this a stable but not particularly lucrative option. Long-term rental With a neighborhood rating of 76/100 and a fair value only 4.4% higher than the asking price, this apartment could serve as a moderately competitive long-term rental investment. The yield of 3.5% indicates some return, yet it may not meet the higher expectations typically desired in this sector due to its closer alignment with fair value. Buy-and-hold Given the fair valuation of this property, it may not represent an opportunistic buy-and-hold investment strategy in an ever-evolving housing market. While the apartment benefits from a decent neighborhood rating and coastal amenities, the lack of significant price advantage suggests limited appreciation potential over time.
Economic Sensitivity The property may face economic challenges due to its economic stability score of 70/100, which suggests susceptibility to market fluctuations and potential rental income variability.;
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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