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 87 m², energy rating C. Located Armação de Pêra parish, Silves municipality, Faro district. This apartment features a spacious terrace ideal for outdoor relaxation and entertaining, alongside an inviting pool area, enhancing its appeal for both leisure and lifestyle.
The valuation. The asking price of €290,000 sits €93,591 (24.4%) below the fair value of €383,591, indicating that this property is underpriced in the current market. This offers a significant opportunity for potential investors. Buy-to-flip angle. The buy-to-flip strategy could capitalize on the below fair value asking price, allowing for renovations and quick resale in a highly desirable tourist area, aiming for a profitable markup. Buy-to-let angle. The rental income strategy, focusing on short-term vacation rentals, offers a gross yield of approximately 3.5% with an estimated rent of €846 per month, appealing to seasonal visitors in Algarve's tourist region.
Fair value modelled at €383,591 from 6 comparable sales in the area. Asking €290,000 sits €93,591 (24.4%) below — the upside to fair value.
Asking €290,000 versus the Armação de Pêra, Silves, Faro area baseline of €318,564 (€3,662/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 €318,564, adjusted for condition and micro-location, gives a modelled fair value of €383,591 (€4,409/m²), a €93,591 (24.4%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Armação de Pêra · e3ac20 | Subject | €290,000 | €3,333 | — | 85 | 73 |
| rua Vila Nossa Senhora da Rocha, 15A | Active | €350,000 | €3,500 | 5.0% | 74 | 73 |
| rua das Caravelas | Active | €279,000 | €4,810 | 44.3% | 72 | 68 |
| Armação de Pêra · 9d29f7 | Active | €285,000 | €4,318 | 29.5% | 80 | 68 |
| rua Quinta dos Arcos, 1 | Active | €330,000 | €3,511 | 5.3% | 70 | 74 |
| Median comp | €307,500 | €3,915 | 17.4% | 73 | 71 |
Short-term vacation rental The property is positioned in a highly sought-after tourist area in the Algarve, making it an attractive option for short-term vacation rentals with a significant potential for seasonal income. With a 24.4% gap between the listing price and the fair value, investors could benefit from immediate equity while capitalizing on the strong demand for vacation accommodations. Buy-and-hold Given the healthy gross yield of 3.5% and the underpriced status of the apartment, it represents a sound buy-and-hold investment with intrinsic value appreciation potential. The attractive location near beaches and amenities further supports long-term rental potential, ensuring steady returns. Family rental The accessible size of the apartment and its location in a well-rated neighborhood make it suitable as a family rental, yielding stable cash flow. Though it may not attract premium rents compared to luxury rentals, the property remains an appealing option for families seeking comfortable living in a desirable locale.
Economic Vulnerability With an economic stability score of 70/100 and tenant stability at 65/100, there is a moderate risk of fluctuating rental income due to potential economic downturns or tenant turnover.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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