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 Bvillaluxury

Detached house in Montinhos da Luz, Luz

Lagos · Western Algarve ·

€2.5M

Asking Price (EUR)

1.6%

True Net Yield (Owner, all-in)

1.1%

True Net Yield (Managed, all-in)

2.5%

True Gross Yield

66%

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: €69,956/yr
Average Daily Rate: €289
Payback Period: 44.6 years
5-yr Capital Value: €3.3M
10-yr Capital Value: €4.0M
Brixfox Score: 63.2 / 100
Comparable Properties: 32
Data Confidence: 92%
Search Radius: 2 km

True Investment Cost

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

€2.8M

+12.0% over asking

Asking price€2.5M
IMT — Property transfer tax (investment schedule)€187,500
IS — Stamp duty (0.8%)€20,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€37,500
Total acquisition costs€246,250
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)€2.8M

Gross yield (asking price)

2.8%

True gross yield (all-in)

2.5%

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: 240 m²
Land: 900 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

cantilevered upper floorintegrated planters on balconieslarge format sliding glass doorsinfinity pool design

Score Breakdown

ROI
10.2
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
6.64
Payback Speed
0
STR Suitability
3

Description

Design & Functionality in Prime Location Engel & Völkers Lagos proudly introduces you to a new real estate project in Luz tailored for those in pursuit of tranquility, security and who at the same time wish to be close to the beach, city center and all the amenities & leisure facilities. Located on a sunny hillside fa

Location

📍 37.0896°N, 8.7459°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
240 m²
Land Plot
900 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 1.8% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score63
GradeB
Brixfox Intelligence
63BStrong
Score Breakdown
ROI & Yield69%
Capital Growth66%
Risk Profile65%
Market Demand63%

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
+7.3%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$691K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
1.8%
$3,986/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
12 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
56.8 yr
Rental only

Property details

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

Description

Design & Functionality in Prime Location Engel & Völkers Lagos proudly introduces you to a new real estate project in Luz tailored for those in pursuit of tranquility, security and who at the same time wish to be close to the beach, city center and all the amenities & leisure facilities. Located on a sunny hillside fa

Income Breakdown

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Nightly Rate (ADR)
$417/night
50% ($192)Brixfox estimate($417/night)200% ($768)
Occupancy
66%
10%Brixfox estimate(66%)100%

Short-Term Rental

Yearly income
$47,835
Airbnb data$417/night · 66% occupancy
Rental income
$417/night · 66% occ.
$101,135
Running costs (20%)
Utilities, cleaning, maintenance
-$20,227
Income tax (10%)
Indonesian rental income tax
-$28,318
Property tax
Annual property tax
-$4,755
Net income
1.8% ROI
$47,835

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$2,717,391
IMT (transfer tax, investment schedule)$203,804
Imposto de Selo (stamp duty)$21,739
Notary & registration$1,359
Legal / due diligence$40,761
Total acquisition costs$267,663
RenovationMove-in ready
Furnishing & STR launch
3bd × $8,696 base + appliances, electronics, outdoor, licence, photography, linens.		$55,761
All-in investment$3,040,815

Gross yield (asking)

3.7%

True gross yield (all-in)

3.3%

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.

$11.7M$8.8M$5.9M$2.9M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 302x ReturnToday: $2.5M
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.
2x return
Year 14: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$3.0M
+22%
Rental Income
+$234K
Total Position
$3.3M
+31%
5.6%/yr
Year 10
Capital Value
$3.7M
+48%
Rental Income
+$505K
Total Position
$4.2M
+68%
5.3%/yr
Year 20
Capital Value
$5.5M
+119%
Rental Income
+$1.2M
Total Position
$6.7M
+166%
5.0%/yr
Year 30
Capital Value
$8.1M
+224%
Rental Income
+$2.1M
Total Position
$10.2M
+308%
4.8%/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
Weak
1.8% annual return
Occupancy
Good
66% average occupancy
Nightly Rate
Strong
$384 per night
Visual Appeal
Strong
9/10 instagrammability
Size & Space
Strong
900 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $384 — positioned in the top tier
Stunning visuals with 9/10 instagrammability — commands premium nightly rates
Generous 900 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 1.8% is below 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

46% occ.
1.6%
$3,725/mo
56% occ.
2.0%
$4,614/mo
66% occ.
2.4%
$5,503/mo
current
76% occ.
2.8%
$6,392/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.