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, 1-bathroom apartment of 50 m², built in 1980, energy rating D. Located on rua do Alentejo, Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: This apartment benefits from large, double-glazed windows ensuring abundant natural light, and its central location places it conveniently near shops and restaurants, enhancing its appeal.
The valuation. The asking price of €280,000 exceeds the fair value of €230,227 by €49,773 (21.6%), indicating the property is overpriced in the current market context. A careful reevaluation of comparable listings may be warranted.
Fair value modelled at €230,227 from 6 comparable sales in the area. Asking €280,000 sits €49,773 (21.6%) above — overpriced versus fair value.
Asking €280,000 versus the rua do Alentejo area baseline of €220,450 (€4,409/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 €220,450, adjusted for condition and micro-location, gives a modelled fair value of €230,227 (€4,605/m²), a €49,773 (21.6%) gap versus the €280,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Alentejo | Subject | €280,000 | €5,600 | — | 65 | 72 |
| Armação de Pêra · 0900e5 | Active | €279,000 | €2,818 | 49.7% | 65 | 73 |
| Armação de Pêra · 6c779f | Active | €189,000 | €5,727 | 2.3% | 66 | 70 |
| Armação de Pêra · f14e23 | Active | €198,500 | €6,403 | 14.3% | 70 | 69 |
| rua Centro, 7 | Active | €270,000 | €4,909 | 12.3% | 64 | 75 |
| Median comp | €234,250 | €5,318 | 5.0% | 66 | 72 |
Short-term vacation rental This property is overpriced with a fair value gap of 21.6%, which limits potential profit margins for short-term rentals in the competitive Algarve market. Despite the strong seasonal demand, the gross yield of 3.3% does not justify the current listing price. Long-term rental With a current listing price of €280,000, the property is overpriced compared to its fair value of €230,227 and yields a gross return of only 3.3%. This diminished return makes it less attractive for securing stable long-term rental income in a tourism-centric economy. Buy-and-hold Purchasing this apartment at its current price of €280,000 is not advisable since it is overpriced by 21.6% relative to its fair value. The potential for appreciation in a tourism-reliant area like Armação de Pêra is overshadowed by the high initial investment. Not ideal for This property type is not suitable for student housing due to its size and location, which typically attract tourists rather than long-term residents. Additionally, it does not cater to the luxury market, as its condition rating of 67/100 reflects a need for improvements that would appeal to higher-end tenants.
Moderate Economic and Tenant Risk The property's economic stability score of 70/100 and tenant stability score of 70/100 suggest a moderate risk due to potential fluctuations in income and tenant turnover, which may impact overall returns.
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