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 58 m² on the 2nd floor, built in 1975, energy rating C. Located on rua das Caravelas, Armação de Pêra parish, Silves municipality, Faro district. This apartment boasts elevator access, a rare feature in this coastal area, enhancing convenience for all residents.
The valuation. The asking price of €279,000 is positioned 10.3% above fair value at €253,031, indicating that while the property is not a bargain, its current price aligns with market expectations. Buy-to-flip angle. The strategy would focus on increasing the property's appeal through minor renovations and decor updates to attract buyers, leveraging the apartment's decent condition and neighborhood appeal. Buy-to-let angle. The estimated rental income of €814 per month provides a gross yield of 3.5%, making it a feasible option for long-term rental investment in a tourist-centric location like Armação de Pêra.
Fair value modelled at €253,031 from 6 comparable sales in the area. Asking €279,000 sits €25,969 (10.3%) above — overpriced versus fair value.
Asking €279,000 versus the rua das Caravelas area baseline of €215,205 (€3,710/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €215,205, adjusted for condition and micro-location, gives a modelled fair value of €253,031 (€4,363/m²), a €25,969 (10.3%) gap versus the €279,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Caravelas | Subject | €279,000 | €4,810 | — | 72 | 68 |
| Armação de Pêra · 19f484 | Active | €250,000 | €3,846 | 20.0% | 70 | 71 |
| beco Proj. À Rua Doutor Henrique Gomes, 3 | Active | €250,000 | €4,808 | 0.1% | 69 | 75 |
| Armação de Pêra · 15e397 | Active | €380,000 | €3,918 | 18.6% | 73 | 66 |
| rua Vila Nossa Senhora da Rocha, 16 | Active | €400,000 | €5,000 | 3.9% | 74 | 72 |
| Median comp | €315,000 | €4,363 | 9.3% | 72 | 72 |
Short-term vacation rental Given the Algarve's seasonal demand spikes, this 1-bed apartment in Armação de Pêra can generate a gross yield of 3.5%, making it suitable for short-term vacation rentals. However, with a fair value of €253,031, it is priced at €279,000, reflecting a premium that may limit profitability. Long-term rental The property’s gross yield of 3.5% indicates modest returns for long-term rentals in a family-friendly neighbourhood with low crime rates. At €279,000, which exceeds the fair value by 10.3%, investors should be cautious about long-term cash flow potential. Buy-and-hold As a buy-and-hold investment, the property is set in a tourism-centric location, but its current pricing at 10.3% above fair value suggests limited immediate appreciation. The condition rating of 75/100 does support a stable investment but does not compensate for the overpricing in the long term.
Economic Vulnerability The low economic stability score of 50/100 indicates a risk of fluctuating market conditions affecting property value and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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