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.
4-bedroom, 3-bathroom house of 336 m², built in 1983, energy rating C. Located on jardim de Inverno, Armação de Pêra parish, Silves municipality, Faro district. This villa features a spacious winter garden with panoramic views, enhancing the property's natural light and connection to the surrounding scenic landscape.
The valuation. The asking price of €995,000 sits €36,665 (3.6%) below the fair value of €1,031,665, indicating that this property is priced fairly relative to its market value. Buy-to-flip angle. A buy-to-flip strategy could target a resale in the growing Algarve market, leveraging the property’s standard to above-standard quality for a profitable exit. Buy-to-let angle. The property’s estimated gross yield of 6.5%, or approximately €5,390/month, positions it well for a buy-to-let strategy, capitalizing on the region's strong tourism and expat demand.
Fair value modelled at €1,031,665 from 6 comparable sales in the area. Asking €995,000 sits €36,665 (3.6%) below — the upside to fair value.
Asking €995,000 versus the jardim de Inverno area baseline of €856,797 (€2,550/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €856,797, adjusted for condition and micro-location, gives a modelled fair value of €1,031,665 (€3,070/m²), a €36,665 (3.6%) gap versus the €995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| jardim de Inverno | Subject | €995,000 | €2,961 | — | 75 | 70 |
| travessa das Escadinhas, 4 | Active | €780,000 | €3,900 | 31.7% | 72 | 70 |
| rua das Amendoeiras, 12 | Active | €595,000 | €2,380 | 19.6% | — | 72 |
| Alcantarilha e Pêra · 828fed | Active | €640,000 | €3,441 | 16.2% | 74 | 65 |
| Alcantarilha e Pêra · a80338 | Active | €665,000 | €2,481 | 16.2% | 78 | 75 |
| Median comp | €652,500 | €2,961 | 0% | 74 | 71 |
Short-term vacation rental Given the property’s appealing location in Armação de Pêra, it leverages strong tourism demand, leading to a promising gross yield of 6.5%. However, with the listing price close to fair value, immediate profitability may be constrained, making it essential to maximize occupancy rates. Buy-and-hold The property holds potential for long-term appreciation thanks to its location in a desirable tourist region, providing steady rental income. With a fair valuation just above the listing price, careful management will be needed to ensure it meets long-term investment goals without overextending financially. Family rental This property could cater effectively to families looking for rental opportunities in a community with solid amenities and a favorable tenant quality rating. Nonetheless, as the price aligns closely with its fair value, it’s crucial to focus on effective management and tenant retention to ensure stable cash flow. Not ideal for student housing Given the property’s size and location, it does not align well with the typical needs of the student housing market, where smaller, more affordable accommodations are favored. Consequently, potential returns from this demographic would likely be limited. Not ideal for luxury market The property does not meet the specifications typically required for the luxury segment, as it caters more to the mid-market demographic. Thus, pursuing a luxury buyer or renter could result in misalignment with market expectations and lower demand.
Economic Volatility Risk With an economic stability score of 60/100, there is a notable risk of fluctuations in market conditions that could impact property value and 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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