House in Praia da Luz, Luz
House in Praia da Luz, Luz — image 2House in Praia da Luz, Luz — image 3House in Praia da Luz, Luz — image 4House in Praia da Luz, Luz — image 5
Grade Avillamid-range

House in Praia da Luz, Luz

Lagos · Western Algarve ·

€845,000

Asking Price (EUR)

8.3%

True Net Yield (Owner, all-in)

5.7%

True Net Yield (Managed, all-in)

12.7%

True Gross Yield

46%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2 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: €123,466/yr
Average Daily Rate: €733
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 8.5 years
5-yr Capital Value: €1.1M
10-yr Capital Value: €1.4M
Brixfox Score: 76.4 / 100
Comparable Properties: 14
Data Confidence: 85%
Search Radius: 2 km

True Investment Cost

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

€968,550

+14.6% over asking

Asking price€845,000
IMT — Property transfer tax (investment schedule)€50,700
IS — Stamp duty (0.8%)€6,760
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€12,675
Total acquisition costs€71,385
Renovation (est. €55/m² × 123 m²)
Light touch-ups — paint, fixtures, deep clean.		€6,765
(€3,690–€9,840)
Furnishing & STR launch (5bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€45,400
All-in investment (incl. renovation & furnishing)€968,550

Gross yield (asking price)

14.6%

True gross yield (all-in)

12.7%

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: 5
Bathrooms: 3
Building: 123 m²
Land: 145 m²
Style: portuguese-traditional
Condition: good
Year Built: 2003
Energy Certificate: E
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

private poolmultiple balconies/terracesfireplace

Score Breakdown

ROI
24.89
Visual Appeal
12.8
Ownership Security
13
Location
10.2
Land & Space
3.89
Rental Demand
4.62
Payback Speed
4
STR Suitability
3

Description

This beautiful 4+1 bedroom villa with private pool is located within walking distance of all amenities in Praia da Luz. The hallway leads you directly into a beautiful bright open-plan living, dining and kitchen area. The living room features a charming pellet-burner fireplace, while the open layout makes it ideal fo

Location

📍 37.0828°N, 8.7399°W

· Lagos, Algarve, Portugal

View on B&P Real Estate Agency →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Praia da Luz, Luz

Inventory
5 Beds
Bathrooms
3 Baths
Built Area
123 m²
Land Plot
145 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 10.0% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score76
GradeA
Brixfox Intelligence
76AExcellent
Score Breakdown
ROI & Yield84%
Capital Growth80%
Risk Profile77%
Market Demand76%

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
+15.5%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$233K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
10.0%
$7,618/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
7 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
10.0 yr
Rental only

Property details

Year built: 2003
Energy: E
Condition: good

Description

This beautiful 4+1 bedroom villa with private pool is located within walking distance of all amenities in Praia da Luz. The hallway leads you directly into a beautiful bright open-plan living, dining and kitchen area. The living room features a charming pellet-burner fireplace, while the open layout makes it ideal fo

Income Breakdown

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Nightly Rate (ADR)
$1,062/night
50% ($488)Brixfox estimate($1,062/night)200% ($1953)
Occupancy
46%
10%Brixfox estimate(46%)100%

Short-Term Rental

Yearly income
$91,413
Airbnb data$1,062/night · 46% occupancy
Rental income
$1,062/night · 46% occ.
$178,885
Running costs (20%)
Utilities, cleaning, maintenance
-$35,777
Income tax (10%)
Indonesian rental income tax
-$50,088
Property tax
Annual property tax
-$1,607
Net income
10.0% ROI
$91,413

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$918,478
IMT (transfer tax, investment schedule)$55,109
Imposto de Selo (stamp duty)$7,348
Notary & registration$1,359
Legal / due diligence$13,777
Total acquisition costs$77,592
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$7,353
($4,011–$10,696)
Furnishing & STR launch
5bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$47,174
All-in investment$1,050,598

Gross yield (asking)

19.5%

True gross yield (all-in)

17.0%

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 Lagos.

$7.8M$5.8M$3.9M$1.9M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $845K
Capital appreciation
Property value growing at +4%/yr based on Lagos 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 9: rental income alone has repaid the full purchase price.
2x return
Year 7: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.0M
+22%
Rental Income
+$446K
Total Position
$1.5M
+75%
11.8%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$964K
Total Position
$2.2M
+162%
10.1%/yr
Year 20
Capital Value
$1.9M
+119%
Rental Income
+$2.3M
Total Position
$4.1M
+387%
8.2%/yr
Year 30
Capital Value
$2.7M
+224%
Rental Income
+$4.0M
Total Position
$6.7M
+698%
7.2%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
10.0% annual return
Occupancy
Average
46% average occupancy
Nightly Rate
Strong
$977 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Weak
145 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 10.0% — outperforms most villas in this market
Premium nightly rate of $977 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 46% — 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.
8.7%
$6,646/mo
40% occ.
11.6%
$8,906/mo
46% occ.
13.5%
$10,301/mo
current
56% occ.
16.4%
$12,561/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.