Detached house in Praia da Luz, Luz
Detached house in Praia da Luz, Luz — image 2Detached house in Praia da Luz, Luz — image 3Detached house in Praia da Luz, Luz — image 4Detached house in Praia da Luz, Luz — image 5
Grade B+villabudget

Detached house in Praia da Luz, Luz

Lagos · Western Algarve ·

€330,000

Asking Price (EUR)

4.3%

True Net Yield (Owner, all-in)

3.0%

True Net Yield (Managed, all-in)

6.7%

True Gross Yield

42%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.8 months ago and is currently at 15% 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: €39,109/yr
Average Daily Rate: €252
Payback Period: 10.5 years
5-yr Capital Value: €433,615
10-yr Capital Value: €527,559
Brixfox Score: 74.6 / 100
Comparable Properties: 12
Data Confidence: 78%
Search Radius: 2 km

True Investment Cost

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

€584,720

+77.2% over asking

Asking price€330,000
IMT — Property transfer tax (investment schedule)€14,230
IS — Stamp duty (0.8%)€2,640
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€4,950
Total acquisition costs€23,070
Renovation (est. €900/m² × 229 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€206,100
(€160,300–€251,900)
Furnishing & STR launch (4bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€25,550
All-in investment (incl. renovation & furnishing)€584,720

Gross yield (asking price)

11.8%

True gross yield (all-in)

6.7%

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: 4
Building: 229 m²
Land: 8400 m²
Style: dated
Condition: needs-renovation
Energy Certificate: Exempt
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
22.51
Visual Appeal
5.6
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
4.25
Payback Speed
4
STR Suitability
3

Description

This property offers a unique combination of rustic charm and urban convenience. The rustic portion spans a vast expanse of 8400m2, ideal for those seeking space and tranquility amidst nature. On the other hand, the urban area has a building footprint of 229m2, providing the opportunity to build or adapt a residence ac

Location

📍 37.0881°N, 8.7280°W

· Lagos, Algarve, Portugal

View on Algarve Sunset Properties →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Praia da Luz, Luz

Inventory
4 Beds
Bathrooms
0 Baths
Built Area
229 m²
Land Plot
8400 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 8.1% 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
+13.6%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$91K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
8.1%
$2,417/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
12.4 yr
Rental only

Property details

Energy: Exempt
Condition: needs-renovation

Description

This property offers a unique combination of rustic charm and urban convenience. The rustic portion spans a vast expanse of 8400m2, ideal for those seeking space and tranquility amidst nature. On the other hand, the urban area has a building footprint of 229m2, providing the opportunity to build or adapt a residence ac

Income Breakdown

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Nightly Rate (ADR)
$368/night
50% ($169)Brixfox estimate($368/night)200% ($676)
Occupancy
42%
10%Brixfox estimate(42%)100%

Short-Term Rental

Yearly income
$29,006
Airbnb data$368/night · 42% occupancy
Rental income
$368/night · 42% occ.
$56,988
Running costs (20%)
Utilities, cleaning, maintenance
-$11,398
Income tax (10%)
Indonesian rental income tax
-$15,957
Property tax
Annual property tax
-$628
Net income
8.1% ROI
$29,006

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$358,696
IMT (transfer tax, investment schedule)$15,467
Imposto de Selo (stamp duty)$2,870
Notary & registration$1,359
Legal / due diligence$5,380
Total acquisition costs$25,076
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$224,022
($174,239–$273,804)
Furnishing & STR launch
4bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$25,598
All-in investment$633,391

Gross yield (asking)

15.9%

True gross yield (all-in)

9.0%

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.

$2.7M$2.0M$1.3M$673K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $330K
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 11: rental income alone has repaid the full purchase price.
2x return
Year 8: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$401K
+22%
Rental Income
+$142K
Total Position
$543K
+65%
10.5%/yr
Year 10
Capital Value
$488K
+48%
Rental Income
+$306K
Total Position
$794K
+141%
9.2%/yr
Year 20
Capital Value
$723K
+119%
Rental Income
+$717K
Total Position
$1.4M
+336%
7.6%/yr
Year 30
Capital Value
$1.1M
+224%
Rental Income
+$1.3M
Total Position
$2.3M
+609%
6.7%/yr

Location

Lagos

Western Algarve, Approximate area

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Airbnb Comp Analysis

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
8.1% annual return
Occupancy
Weak
42% average occupancy
Nightly Rate
Strong
$338 per night
Visual Appeal
Weak
2/10 instagrammability
Size & Space
Strong
8400 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 8.1% — outperforms most villas in this market
Premium nightly rate of $338 — positioned in the top tier
Generous 8400 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 42% — 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.
7.7%
$2,295/mo
40% occ.
10.3%
$3,078/mo
42% occ.
10.9%
$3,272/mo
current
52% occ.
13.6%
$4,055/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.