Detached house in Rua das Mercês, Montinhos da Luz, Luz
Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 2Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 3Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 4Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 5
Grade B+villamid-range

Detached house in Rua das Mercês, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€899,000

Asking Price (EUR)

4.6%

True Net Yield (Owner, all-in)

3.2%

True Net Yield (Managed, all-in)

7.0%

True Gross Yield

66%

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: €73,350/yr
Average Daily Rate: €303
Payback Period: 15.3 years
5-yr Capital Value: €1.2M
10-yr Capital Value: €1.4M
Brixfox Score: 68 / 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.

€1.0M

+16.2% over asking

Asking price€899,000
IMT — Property transfer tax (investment schedule)€53,940
IS — Stamp duty (0.8%)€7,192
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€13,485
Total acquisition costs€75,867
Renovation (est. €55/m² × 630 m²)
Light touch-ups — paint, fixtures, deep clean.		€34,650
(€18,900–€50,400)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€34,700
All-in investment (incl. renovation & furnishing)€1.0M

Gross yield (asking price)

8.2%

True gross yield (all-in)

7.0%

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: 2
Building: 630 m²
Land: 181 m²
Style: portuguese-traditional
Condition: good
Year Built: 1992
Energy Certificate: B-
Private Pool

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

balustrade balconiescobblestone pool surroundarched patio entrances

Score Breakdown

ROI
17.84
Visual Appeal
12.8
Ownership Security
13
Location
8.4
Land & Space
3.28
Rental Demand
6.63
Payback Speed
3
STR Suitability
3

Description

This fully renovated 3-bedroom detached villa is bright, spacious, and easy to live in, with a modern feel throughout. On the ground floor, a large entrance hall leads into an open-plan kitchen, dining and living area with plenty of natural light. A log burner adds a cosy touch in the cooler months, and air conditioni

Location

📍 37.0894°N, 8.7454°W

· Lagos, Algarve, Portugal

View on MOVE Algarve →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua das Mercês, Montinhos da Luz, Luz

Inventory
3 Beds
Bathrooms
2 Baths
Built Area
630 m²
Land Plot
181 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 5.5% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score68
GradeB+
Brixfox Intelligence
68B+Strong
Score Breakdown
ROI & Yield75%
Capital Growth71%
Risk Profile70%
Market Demand68%

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
+11.0%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$248K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.5%
$4,458/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
18.3 yr
Rental only

Property details

Year built: 1992
Energy: B-
Condition: good

Description

This fully renovated 3-bedroom detached villa is bright, spacious, and easy to live in, with a modern feel throughout. On the ground floor, a large entrance hall leads into an open-plan kitchen, dining and living area with plenty of natural light. A log burner adds a cosy touch in the cooler months, and air conditioni

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$439/night
50% ($202)Brixfox estimate($439/night)200% ($807)
Occupancy
66%
10%Brixfox estimate(66%)100%

Short-Term Rental

Yearly income
$53,496
Airbnb data$439/night · 66% occupancy
Rental income
$439/night · 66% occ.
$106,165
Running costs (20%)
Utilities, cleaning, maintenance
-$21,233
Income tax (10%)
Indonesian rental income tax
-$29,726
Property tax
Annual property tax
-$1,710
Net income
5.5% ROI
$53,496

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$977,174
IMT (transfer tax, investment schedule)$58,630
Imposto de Selo (stamp duty)$7,817
Notary & registration$1,359
Legal / due diligence$14,658
Total acquisition costs$82,464
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$37,663
($20,543–$54,783)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$35,543
All-in investment$1,132,845

Gross yield (asking)

10.9%

True gross yield (all-in)

9.4%

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.

$6.0M$4.5M$3.0M$1.5M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $899K
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 15: rental income alone has repaid the full purchase price.
2x return
Year 10: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.1M
+22%
Rental Income
+$261K
Total Position
$1.4M
+51%
8.6%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$564K
Total Position
$1.9M
+111%
7.7%/yr
Year 20
Capital Value
$2.0M
+119%
Rental Income
+$1.3M
Total Position
$3.3M
+266%
6.7%/yr
Year 30
Capital Value
$2.9M
+224%
Rental Income
+$2.3M
Total Position
$5.3M
+485%
6.1%/yr

Location

Lagos

Western Algarve, Approximate area

Loading Map...

Airbnb Comp Analysis

No nearby Airbnb listings found

Ask Brixfox AI

Conversational analysis — questions about this listing, answered from real data.

Try one of these

Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
5.5% annual return
Occupancy
Good
66% average occupancy
Nightly Rate
Strong
$403 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Average
181 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $403 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Compact plot at 181 m² — limited expansion potential

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.
5.1%
$4,183/mo
56% occ.
6.3%
$5,117/mo
66% occ.
7.4%
$6,050/mo
current
76% occ.
8.6%
$6,984/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.