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.
6-bedroom, 6-bathroom palace of 500 m², built in 1920, energy rating D. Located on ladeira de São Pedro, Silves parish, Silves municipality, Faro district. The property includes an impressive 300 kg crystal chandelier from Iran, a nearly priceless historical piece that amplifies its luxurious and culturally rich ambiance.
The valuation. The asking price of €4,000,000 is significantly above the fair value of €1,187,500, reflecting a 236.8% overvaluation. This indicates a substantial disconnect from market fundamentals.
Fair value modelled at €1,187,500 from 5 comparable sales in the area. Asking €4,000,000 sits €2,812,500 (236.8%) above — overpriced versus fair value.
Asking €4,000,000 versus the ladeira de São Pedro area baseline of €785,467 (€1,571/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €785,467, adjusted for condition and micro-location, gives a modelled fair value of €1,187,500 (€2,375/m²), a €2,812,500 (236.8%) gap versus the €4,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| ladeira de São Pedro | Subject | €4,000,000 | €8,000 | — | 80 | 70 |
| via Algarviana | Active | €1,150,000 | €5,000 | 37.5% | 80 | 74 |
| Estômbar e Parchal · 6a920a | Active | €2,200,000 | €3,308 | 58.6% | 62 | 70 |
| rua Doutor João de Meneses, 19 | Active | €380,000 | €2,375 | 70.3% | 80 | 73 |
| Silves · 023943 | Active | €575,000 | €2,255 | 71.8% | 72 | 80 |
| Median comp | €862,500 | €2,842 | 64.5% | 76 | 74 |
Short-term vacation rental With a significant gap of 236.8% between the listing and fair value, this 6-bed palace in Silves is overpriced, posing a risk for investors looking for profitable short-term rentals. The lack of yield and condition rating indicates that potential returns may not justify the high purchase price. Long-term rental Given its overpriced status and zero gross yield, this property does not present a viable opportunity for long-term rental investment. The 70/100 neighborhood rating suggests potential tenant quality may be inadequate to support a return on such an elevated investment. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unwise, as its overpriced nature at €4,000,000 significantly overshadows its fair value of €1,187,500. Furthermore, the stagnant yields and high price do not align with the expectations for meaningful appreciation in the foreseeable future.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic fluctuations that may affect tenant retention and 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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