House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro
House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro — image 2House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro — image 3House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro — image 4House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro — image 5
Grade B+villabudget

House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro

Faro · Eastern Algarve ·

€460,000

Asking Price (EUR)

9.5%

True Net Yield (Owner, all-in)

6.6%

True Net Yield (Managed, all-in)

14.7%

True Gross Yield

44%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 months ago and is currently at 17% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.75, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €117,861/yr
Average Daily Rate: €733
-31.0% vs area baselineImage quality 3/10 (-12%), Portuguese-traditional style (+5%), No pool (-12%), Budget finish (-12%)
Payback Period: 4.9 years
5-yr Capital Value: €604,433
10-yr Capital Value: €735,385
Brixfox Score: 74.8 / 100
Comparable Properties: 9
Data Confidence: 61%
Search Radius: 10 km

True Investment Cost

Portuguese transfer tax (IMT) + stamp duty (IS) + notary + registration + legal + renovation + full furnishing & STR launch setup.

€803,210

+74.6% over asking

Asking price€460,000
IMT — Property transfer tax (investment schedule)€24,630
IS — Stamp duty (0.8%)€3,680
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€6,900
Total acquisition costs€36,460
Renovation (est. €900/m² × 305 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€274,500
(€213,500–€335,500)
Furnishing & STR launch (6bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,250
All-in investment (incl. renovation & furnishing)€803,210

Gross yield (asking price)

25.6%

True gross yield (all-in)

14.7%

Estimates use Portugal's investment IMT schedule (non-permanent residence). Actual notary & legal vary; budget +€500–1,000 for surveyor, due-diligence and bank-mortgage fees if financing. Renovation cost is a heuristic on property condition × m² — verify with a site visit. Furnishing uses finish-level-tiered rates covering beds, living, kitchen, electronics, AL licence, linens & professional photography. Working capital (2-3 months operating buffer) not included.

Bedrooms: 6
Bathrooms: 1
Building: 305 m²
Land: 18899 m²
Style: portuguese-traditional
Condition: needs-renovation
Energy Certificate: E

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
25
Visual Appeal
4.6
Ownership Security
13
Location
7.8
Land & Space
12
Rental Demand
4.4
Payback Speed
5
STR Suitability
3

Description

Great investment opportunity! Two buildings for sale, one of them with three fractions of apartments and adjacent land, located near Faro Airport. One building with three fractions already built and another ready to be rebuilt, this location offers a variety of possibilities for expansion and creation. Ideal for those

Location

📍 37.0499°N, 7.9379°W

· Faro, Algarve, Portugal

View on KW Flash Algarve - Sotavento →Also on Idealista.pt
Idealista.pt
Faro / Eastern Algarve

House in Estrada Municipal 518-1, Arneiro - Braciais - Patacão, Faro

Inventory
6 Beds
Bathrooms
1 Baths
Built Area
305 m²
Land Plot
18899 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 17.5% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score75
GradeB+
Brixfox Intelligence
75B+Strong
Score Breakdown
ROI & Yield83%
Capital Growth79%
Risk Profile76%
Market Demand75%

The Brixfox Score is our proprietary AI-powered rating that evaluates rental ROI, capital appreciation potential, risk factors, and local market dynamics to give you a single investment quality metric.

Pro members get full score breakdown with AI recommendations
Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+21.3%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$86K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
17.5%
$7,312/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
5 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
5.7 yr
Rental only

Property details

Energy: E
Condition: needs-renovation

Description

Great investment opportunity! Two buildings for sale, one of them with three fractions of apartments and adjacent land, located near Faro Airport. One building with three fractions already built and another ready to be rebuilt, this location offers a variety of possibilities for expansion and creation. Ideal for those

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$1,060/night
50% ($488)Brixfox estimate($1,060/night)200% ($1950)
Occupancy
44%
10%Brixfox estimate(44%)100%

Short-Term Rental

Yearly income
$87,745
Airbnb data$1,060/night · 44% occupancy
Rental income
$1,060/night · 44% occ.
$170,423
Running costs (20%)
Utilities, cleaning, maintenance
-$34,085
Income tax (10%)
Indonesian rental income tax
-$47,718
Property tax
Annual property tax
-$875
Net income
17.5% ROI
$87,745

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

True all-in investment

What the headline asking price actually costs once mandatory taxes, fees, renovation, and furnishing are added. Yields rebased onto this number — closer to what you'll really earn against what you'll really pay.

Asking price$500,000
IMT (transfer tax, investment schedule)$26,772
Imposto de Selo (stamp duty)$4,000
Notary & registration$1,359
Legal / due diligence$7,500
Total acquisition costs$39,630
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$298,370
($232,065–$364,674)
Furnishing & STR launch
6bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$32,880
All-in investment$870,880

Gross yield (asking)

34.1%

True gross yield (all-in)

19.6%

Estimates use Portugal's standard transfer tax + typical legal/notary defaults. Verify with local counsel before committing — actual fees vary by deal structure.

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Faro.

$6.1M$4.6M$3.1M$1.5M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $460K
Capital appreciation
Property value growing at +4%/yr based on Faro market trends.
Rental income
Cumulative net rental earnings collected over time, growing with annual revenue increases.
Total return
Capital value + rental income. Your actual total position if you sold and kept all rent.
Paid back
Year 6: rental income alone has repaid the full purchase price.
2x return
Year 5: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$560K
+22%
Rental Income
+$429K
Total Position
$988K
+115%
16.5%/yr
Year 10
Capital Value
$681K
+48%
Rental Income
+$925K
Total Position
$1.6M
+249%
13.3%/yr
Year 20
Capital Value
$1.0M
+119%
Rental Income
+$2.2M
Total Position
$3.2M
+591%
10.1%/yr
Year 30
Capital Value
$1.5M
+224%
Rental Income
+$3.8M
Total Position
$5.3M
+1059%
8.5%/yr

Location

Faro

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
17.5% annual return
Occupancy
Weak
44% average occupancy
Nightly Rate
Strong
$975 per night
Visual Appeal
Weak
2/10 instagrammability
Size & Space
Strong
18899 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 17.5% — outperforms most villas in this market
Premium nightly rate of $975 — positioned in the top tier
Generous 18899 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 44% — factor in seasonal gaps

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
16.1%
$6,698/mo
40% occ.
21.5%
$8,955/mo
44% occ.
23.7%
$9,869/mo
current
54% occ.
29.1%
$12,126/mo

Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Includes 10% Indonesian rental tax (PPh) and annual property tax (PBB). Market factors in Portugal may impact actual yields.