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 51 m², built in 1996. Located on rua Álvaro Gomes, 3, Armação de Pêra parish, Silves municipality, Faro district. Noteworthy Features: This apartment offers a modern kitchen that seamlessly connects with the living area via an access balcony, enhancing spaciousness and natural light flow throughout the home.
The valuation. The asking price of €255,000 sits €41,388 above the fair value of €213,612, which represents a 19.4% overvaluation. This suggests that potential buyers may want to negotiate to align with market expectations.
Fair value modelled at €213,612 from 6 comparable sales in the area. Asking €255,000 sits €41,388 (19.4%) above — overpriced versus fair value.
Asking €255,000 versus the rua Álvaro Gomes, 3 area baseline of €195,956 (€3,842/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €195,956, adjusted for condition and micro-location, gives a modelled fair value of €213,612 (€4,188/m²), a €41,388 (19.4%) gap versus the €255,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Álvaro Gomes, 3 | Subject | €255,000 | €5,000 | — | 70 | 74 |
| Armação de Pêra · 8ee358 | Active | €265,000 | €4,077 | 18.5% | 72 | 72 |
| rua Mestre Abílio Prudêncio, 6 | Active | €285,000 | €3,904 | 21.9% | 60 | 71 |
| avenida do Rio | Active | €260,000 | €5,306 | 6.1% | 78 | 74 |
| Armação de Pêra · cfe1dc | Active | €215,990 | €4,075 | 18.5% | 65 | 71 |
| Median comp | €262,500 | €4,076 | 18.5% | 69 | 72 |
Long-term rental Given the gap of 19.4% from the fair value, this property is overpriced, which may impact rental yield and overall investment viability. With a gross yield of only 3.5%, the returns may not justify the higher purchase price in a competitive rental market. Short-term vacation rental While the property is located in a popular tourism area, its overpricing at €255,000 could limit profitability, especially given the current yield of 3.5%. Tourists may seek lower-cost alternatives in Armação de Pêra, making this investment less attractive. Buy-and-hold The significant overvaluation of this apartment highlights the potential risks in a buy-and-hold strategy due to the premium paid above fair value. The diverse economic dependency on tourism may not compensate for the lack of rental growth, resulting in stagnant returns over time.
Economic Vulnerability The economic stability score of 65/100 indicates a potential risk in market fluctuations that could affect tenant demand 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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