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 Bvillamid-range

Detached house in Praia da Luz, Luz

Lagos · Western Algarve ·

€595,000

Asking Price (EUR)

3.8%

True Net Yield (Owner, all-in)

2.7%

True Net Yield (Managed, all-in)

5.9%

True Gross Yield

59%

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: €39,869/yr
Average Daily Rate: €185
Payback Period: 18.6 years
5-yr Capital Value: €781,821
10-yr Capital Value: €951,205
Brixfox Score: 63.7 / 100
Comparable Properties: 84
Data Confidence: 95%
Search Radius: 2 km

True Investment Cost

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

€674,715

+13.4% over asking

Asking price€595,000
IMT — Property transfer tax (investment schedule)€35,430
IS — Stamp duty (0.8%)€4,760
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€8,925
Total acquisition costs€50,365
Renovation€0 — move-in ready
Furnishing & STR launch (2bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€29,350
All-in investment (incl. renovation & furnishing)€674,715

Gross yield (asking price)

6.7%

True gross yield (all-in)

5.9%

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: 2
Bathrooms: 2
Building: 122 m²
Land: 130 m²
Style: contemporary
Condition: excellent
Year Built: 1987
Energy Certificate: D
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

private plunge poolbalcony with sea viewmodern patterned accent wallopen-plan living area

Score Breakdown

ROI
16.04
Visual Appeal
10
Ownership Security
13
Location
10.2
Land & Space
3.5
Rental Demand
5.92
Payback Speed
2
STR Suitability
3

Description

Discover this beautiful 2 bedroom, 2 bathroom house, fully renovated and furnished, located in a central area of Praia da Luz, just a 5 minute walk from the beach and close to all amenities, restaurants and bars. Spread over two floors, this villa offers a perfect combination of comfort and style: Ground floor: Two

Location

📍 37.0903°N, 8.7262°W

· Lagos, Algarve, Portugal

View on Bravo Homes Algarve →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Praia da Luz, Luz

Inventory
2 Beds
Bathrooms
2 Baths
Built Area
122 m²
Land Plot
130 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 4.5% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score64
GradeB
Brixfox Intelligence
64BStrong
Score Breakdown
ROI & Yield70%
Capital Growth67%
Risk Profile66%
Market Demand64%

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
+10.0%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$164K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
4.5%
$2,403/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
9 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
22.4 yr
Rental only

Property details

Year built: 1987
Energy: D
Condition: excellent

Description

Discover this beautiful 2 bedroom, 2 bathroom house, fully renovated and furnished, located in a central area of Praia da Luz, just a 5 minute walk from the beach and close to all amenities, restaurants and bars. Spread over two floors, this villa offers a perfect combination of comfort and style: Ground floor: Two

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$267/night
50% ($123)Brixfox estimate($267/night)200% ($491)
Occupancy
59%
10%Brixfox estimate(59%)100%

Short-Term Rental

Yearly income
$28,837
Airbnb data$267/night · 59% occupancy
Rental income
$267/night · 59% occ.
$57,632
Running costs (20%)
Utilities, cleaning, maintenance
-$11,526
Income tax (10%)
Indonesian rental income tax
-$16,137
Property tax
Annual property tax
-$1,132
Net income
4.5% ROI
$28,837

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$646,739
IMT (transfer tax, investment schedule)$38,511
Imposto de Selo (stamp duty)$5,174
Notary & registration$1,359
Legal / due diligence$9,701
Total acquisition costs$54,745
RenovationMove-in ready
Furnishing & STR launch
2bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$29,728
All-in investment$731,212

Gross yield (asking)

8.9%

True gross yield (all-in)

7.9%

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.

$3.7M$2.8M$1.8M$918K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $595K
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 18: rental income alone has repaid the full purchase price.
2x return
Year 11: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$724K
+22%
Rental Income
+$141K
Total Position
$865K
+45%
7.8%/yr
Year 10
Capital Value
$881K
+48%
Rental Income
+$304K
Total Position
$1.2M
+99%
7.1%/yr
Year 20
Capital Value
$1.3M
+119%
Rental Income
+$713K
Total Position
$2.0M
+239%
6.3%/yr
Year 30
Capital Value
$1.9M
+224%
Rental Income
+$1.3M
Total Position
$3.2M
+436%
5.8%/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
Average
4.5% annual return
Occupancy
Average
59% average occupancy
Nightly Rate
Strong
$245 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Weak
130 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $245 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 4.5% is near the market average — model your cashflow carefully

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

Risks & What-If

What if occupancy changes?

Owner Managed scenario

39% occ.
4.0%
$2,131/mo
49% occ.
5.0%
$2,699/mo
59% occ.
6.1%
$3,268/mo
current
69% occ.
7.1%
$3,836/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.