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.
3-bedroom, 2-bathroom house of 195 m², built in 1995, energy rating D. Located Armação de Pêra parish, Silves municipality, Faro district. This property features a summer kitchen amidst fragrant citrus trees, perfect for outdoor entertaining under the starry Algarve sky.
The valuation. The asking price of €825,000 sits €85,260 (9.4%) below the fair value of €910,260, indicating the property is priced appropriately for the market. Buy-to-flip angle. A resale strategy could capitalize on the high-quality finishes and prime location, appealing to buyers seeking a modern retreat in Algarve. Buy-to-let angle. The estimated rental income of €2,062/month supports a gross yield of 3%, making this property a viable option for long-term rental investments in a sought-after tourist area.
Fair value modelled at €910,260 from 6 comparable sales in the area. Asking €825,000 sits €85,260 (9.4%) below — the upside to fair value.
Asking €825,000 versus the Armação de Pêra, Silves, Faro area baseline of €767,203 (€3,934/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 €767,203, adjusted for condition and micro-location, gives a modelled fair value of €910,260 (€4,668/m²), a €85,260 (9.4%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · 2fce02 | Subject | €825,000 | €4,231 | — | 75 | 75 |
| Porches · 8ee83f | Active | €540,000 | €3,699 | 12.6% | 80 | 71 |
| Alcantarilha e Pêra · 828fed | Active | €640,000 | €3,441 | 18.7% | 74 | 65 |
| Alcantarilha e Pêra · f46b96 | Active | €695,000 | €4,826 | 14.1% | 82 | 62 |
| rua do Levante S / N | Active | €595,000 | €4,917 | 16.2% | 80 | 77 |
| Median comp | €617,500 | €4,263 | 0.8% | 80 | 68 |
Short-term vacation rental The property has a gross yield of 3%, which reflects the current market conditions in a tourism-heavy area like Armação de Pêra. Given its fair valuation, potential short-term rental income will be moderate but steady, benefiting from the region's popularity among holidaymakers. Long-term rental With a fair value of €910,260, this property offers a slight premium in rent-to-value ratio, indicating consistent demand for long-term housing in such a desirable location. However, the gross yield of 3% suggests tight margins, requiring careful consideration for long-term income stability. Buy-and-hold The property, fairly priced at €825,000, may provide capital appreciation potential over time in the Algarve’s tourism-driven market. Nonetheless, as the yield sits at 3%, investors should be aware of the slower return on investment generally associated with holding property in this area. Not ideal for: Student housing, Industrial development, Agriculture This property does not align with strategies focused on student housing, industrial development, or agriculture, given the coastal neighborhood's clear inclination towards residential and vacation rentals.
Economic Weakness With an economic stability score of 65/100, there is a risk that economic downturns could negatively impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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