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.
8-bedroom, 6-bathroom villa of 230 m², built in 1989, energy rating D. Located Armação de Pêra parish, Silves municipality, Faro district. Property Features: The villa includes a unique outdoor area featuring a jacuzzi and an elegant waterfall that enhances the tranquil Mediterranean ambiance of the gardens. Nearby Amenities: Just minutes from local beaches and various recreational facilities, ensuring convenient access to the Algarve lifestyle.
The valuation. The asking price of €1,495,000 sits significantly above the fair value of €1,184,586, indicating a discrepancy of €310,414 (26.2%). Verdict: overpriced. Buy-to-flip angle. The resale strategy could focus on leveraging the high-end finishes to attract buyers, but the current asking price may limit potential profitability. Buy-to-let angle. With a gross yield of 0%, the rental strategy appears unviable at this price point; however, the property’s appeal for short-term vacation rentals leverages Algarve's tourism draw.
Fair value modelled at €1,184,586 from 6 comparable sales in the area. Asking €1,495,000 sits €310,414 (26.2%) above — overpriced versus fair value.
Asking €1,495,000 versus the Armação de Pêra, Silves, Faro area baseline of €976,277 (€4,245/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €976,277, adjusted for condition and micro-location, gives a modelled fair value of €1,184,586 (€5,150/m²), a €310,414 (26.2%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 57f747 | Subject | €1,495,000 | €6,500 | — | 85 | 74 |
| rua de Vilamar | Active | €1,365,000 | €4,361 | 32.9% | 72 | 75 |
| rua Camilo Castelo Branco, 52 | Active | €1,370,000 | €5,150 | 20.8% | 82 | 73 |
| rua Camilo Castelo Branco, 52 | Active | €1,370,000 | €5,150 | 20.8% | 80 | 73 |
| rua Camilo Castelo Branco, 52 | Active | €1,370,000 | €5,150 | 20.8% | 82 | 73 |
| Median comp | €1,370,000 | €5,150 | 20.8% | 81 | 73 |
Short-term vacation rental The property is overpriced at €1,495,000, with a fair value of €1,184,586, indicating a significant gap of 26.2%. Given the current yield of 0% gross, this investment lacks immediate profitability despite the area's strong tourism appeal. Long-term rental At a listing price significantly above the fair value, the 8-bed villa at €1,495,000 does not present a sound long-term rental investment option. With local neighborhood scores of 74/100 for livability, the potential tenant market may not justify the current pricing. Buy-and-hold The high price of €1,495,000 compared to a fair valuation of €1,184,586 makes this property an unattractive buy-and-hold investment. Without positive cash yields and facing an overpriced market condition, long-term appreciation is uncertain at best.
Economic Vulnerability The property’s economic stability score of 65/100 indicates a moderate risk of economic downturns affecting 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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