Detached house in Montinhos da Luz, Luz
Detached house in Montinhos da Luz, Luz — image 2Detached house in Montinhos da Luz, Luz — image 3Detached house in Montinhos da Luz, Luz — image 4Detached house in Montinhos da Luz, Luz — image 5
Grade B+villaluxury

Detached house in Montinhos da Luz, Luz

Lagos · Western Algarve ·

€1.9M

Asking Price (EUR)

2.8%

True Net Yield (Owner, all-in)

2.0%

True Net Yield (Managed, all-in)

4.3%

True Gross Yield

66%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.3 months ago and is currently at 11% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.73, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €92,789/yr
Average Daily Rate: €385
Payback Period: 24.1 years
5-yr Capital Value: €2.5M
10-yr Capital Value: €3.0M
Brixfox Score: 73.6 / 100
Comparable Properties: 32
Data Confidence: 93%
Search Radius: 2 km

True Investment Cost

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

€2.1M

+12.7% over asking

Asking price€1.9M
IMT — Property transfer tax (investment schedule)€142,500
IS — Stamp duty (0.8%)€15,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€28,500
Total acquisition costs€187,450
Renovation€0 — move-in ready
Furnishing & STR launch (3bd × €8000 base, luxury tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€53,300
All-in investment (incl. renovation & furnishing)€2.1M

Gross yield (asking price)

4.9%

True gross yield (all-in)

4.3%

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: 3
Bathrooms: 4
Building: 295 m²
Land: 790 m²
Style: modern
Condition: new-build
Year Built: 2024
Energy Certificate: A
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

minimalist white facadeinfinity poollarge glass windowsterraced landscaping

Score Breakdown

ROI
14.16
Visual Appeal
15.6
Ownership Security
13
Location
8.4
Land & Space
11.57
Rental Demand
6.84
Payback Speed
1
STR Suitability
3

Description

New construction with sea view House under construction with completion scheduled for March 2026, located in a privileged area of Praia da Luz, with panoramic views of the sea. House with 295 m2 located on a plot of 790m2, with 3 bedrooms With all rooms facing south, the house is distributed on two floors above groun

Location

📍 37.0875°N, 8.7444°W

· Lagos, Algarve, Portugal

View on Engel & Völkers Lagos →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Montinhos da Luz, Luz

Inventory
3 Beds
Bathrooms
4 Baths
Built Area
295 m²
Land Plot
790 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 3.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score74
GradeB+
Brixfox Intelligence
74B+Strong
Score Breakdown
ROI & Yield81%
Capital Growth78%
Risk Profile75%
Market Demand74%

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
+8.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$525K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.4%
$5,864/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
10 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
29.4 yr
Rental only

Property details

Year built: 2024
Energy: A
Condition: new-build

Description

New construction with sea view House under construction with completion scheduled for March 2026, located in a privileged area of Praia da Luz, with panoramic views of the sea. House with 295 m2 located on a plot of 790m2, with 3 bedrooms With all rooms facing south, the house is distributed on two floors above groun

Income Breakdown

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Nightly Rate (ADR)
$570/night
50% ($262)Brixfox estimate($570/night)200% ($1049)
Occupancy
68%
10%Brixfox estimate(68%)100%

Short-Term Rental

Yearly income
$70,364
Airbnb data$570/night · 68% occupancy
Rental income
$570/night · 68% occ.
$142,266
Running costs (20%)
Utilities, cleaning, maintenance
-$28,453
Income tax (10%)
Indonesian rental income tax
-$39,835
Property tax
Annual property tax
-$3,614
Net income
3.4% ROI
$70,364

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$2,065,217
IMT (transfer tax, investment schedule)$154,891
Imposto de Selo (stamp duty)$16,522
Notary & registration$1,359
Legal / due diligence$30,978
Total acquisition costs$203,750
RenovationMove-in ready
Furnishing & STR launch
3bd × $8,696 base + appliances, electronics, outdoor, licence, photography, linens.		$55,761
All-in investment$2,324,728

Gross yield (asking)

6.9%

True gross yield (all-in)

6.1%

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.

$10.6M$8.0M$5.3M$2.7M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.9M
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 22: rental income alone has repaid the full purchase price.
2x return
Year 12: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$2.3M
+22%
Rental Income
+$344K
Total Position
$2.7M
+40%
6.9%/yr
Year 10
Capital Value
$2.8M
+48%
Rental Income
+$742K
Total Position
$3.6M
+87%
6.5%/yr
Year 20
Capital Value
$4.2M
+119%
Rental Income
+$1.7M
Total Position
$5.9M
+211%
5.8%/yr
Year 30
Capital Value
$6.2M
+224%
Rental Income
+$3.1M
Total Position
$9.2M
+386%
5.4%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
3.4% annual return
Occupancy
Good
68% average occupancy
Nightly Rate
Strong
$524 per night
Visual Appeal
Strong
9/10 instagrammability
Size & Space
Strong
790 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $524 — positioned in the top tier
Stunning visuals with 9/10 instagrammability — commands premium nightly rates
Generous 790 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 3.4% is near the market average — model your cashflow carefully

This villa is a strong investment. High rental demand and good returns make it suitable for both active and passive investors.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

48% occ.
3.2%
$5,570/mo
58% occ.
3.9%
$6,784/mo
68% occ.
4.6%
$7,997/mo
current
78% occ.
5.4%
$9,211/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.