House in Falfeira - Monte Funchal, Lagos
House in Falfeira - Monte Funchal, Lagos — image 2House in Falfeira - Monte Funchal, Lagos — image 3House in Falfeira - Monte Funchal, Lagos — image 4House in Falfeira - Monte Funchal, Lagos — image 5
Grade A+villamid-range

House in Falfeira - Monte Funchal, Lagos

Lagos · Western Algarve ·

€1.5M

Asking Price (EUR)

Limited comps — indicative only

Revenue projections are based on limited comparable data (2 comps, 59% confidence).

8.7%

True Net Yield (Owner, all-in)

6.0%

True Net Yield (Managed, all-in)

13.3%

True Gross Yield

66%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.5 months ago and is currently at 12% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €230,181/yr
Average Daily Rate: €952
Payback Period: 7.8 years
5-yr Capital Value: €2.0M
10-yr Capital Value: €2.4M
Brixfox Score: 85.2 / 100
Comparable Properties: 2
Data Confidence: 59%
Search Radius: 10 km

True Investment Cost

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

€1.7M

+15.1% over asking

Asking price€1.5M
IMT — Property transfer tax (investment schedule)€112,500
IS — Stamp duty (0.8%)€12,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€22,500
Total acquisition costs€148,250
Renovation (est. €55/m² × 298 m²)
Light touch-ups — paint, fixtures, deep clean.		€16,390
(€8,940–€23,840)
Furnishing & STR launch (8bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€61,450
All-in investment (incl. renovation & furnishing)€1.7M

Gross yield (asking price)

15.3%

True gross yield (all-in)

13.3%

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: 8
Bathrooms: 11
Building: 298 m²
Land: 1320 m²
Style: portuguese-traditional
Condition: good
Year Built: 2000
Energy Certificate: D
Private Pool

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large private pool areatraditional Portuguese architecturesmall decorative pond/water feature

Score Breakdown

ROI
25
Visual Appeal
10
Ownership Security
13
Location
10.44
Land & Space
12
Rental Demand
6.79
Payback Speed
5
STR Suitability
3

Description

The home has an official Letting Licence and works fantastically as a guesthouse, but can also easily be used as a large single family home. Accommodation is spread over 2 levels. The ground floor hosts the entrance hall, along with an open plan living / dining / kitchen area that flows easily to the sun terrace and p

Location

📍 37.1162°N, 8.6834°W

· Lagos, Algarve, Portugal

View on B&P Real Estate Agency →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Falfeira - Monte Funchal, Lagos

Inventory
8 Beds
Bathrooms
11 Baths
Built Area
298 m²
Land Plot
1320 m²
Tenure
Freehold
Yield Curve Status

Grade A+ investment — short-term rental yields 10.9% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score85
GradeA+
Brixfox Intelligence
85A+Excellent
Score Breakdown
ROI & Yield94%
Capital Growth89%
Risk Profile86%
Market Demand85%

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
+16.5%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$414K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
10.9%
$14,853/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
6 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
9.1 yr
Rental only

Property details

Year built: 2000
Energy: D
Condition: good

Description

The home has an official Letting Licence and works fantastically as a guesthouse, but can also easily be used as a large single family home. Accommodation is spread over 2 levels. The ground floor hosts the entrance hall, along with an open plan living / dining / kitchen area that flows easily to the sun terrace and p

Income Breakdown

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Nightly Rate (ADR)
$1,405/night
50% ($646)Brixfox estimate($1,405/night)200% ($2584)
Occupancy
68%
10%Brixfox estimate(68%)100%

Short-Term Rental

Yearly income
$178,232
Airbnb data$1,405/night · 68% occupancy
Rental income
$1,405/night · 68% occ.
$348,240
Running costs (20%)
Utilities, cleaning, maintenance
-$69,648
Income tax (10%)
Indonesian rental income tax
-$97,507
Property tax
Annual property tax
-$2,853
Net income
10.9% ROI
$178,232

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$1,630,435
IMT (transfer tax, investment schedule)$122,283
Imposto de Selo (stamp duty)$13,043
Notary & registration$1,359
Legal / due diligence$24,457
Total acquisition costs$161,141
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$17,815
($9,717–$25,913)
Furnishing & STR launch
8bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$64,620
All-in investment$1,874,011

Gross yield (asking)

21.4%

True gross yield (all-in)

18.6%

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.

$14.6M$10.9M$7.3M$3.6M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.5M
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.
Paid back
Year 9: rental income alone has repaid the full purchase price.
2x return
Year 7: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.8M
+22%
Rental Income
+$871K
Total Position
$2.7M
+80%
12.4%/yr
Year 10
Capital Value
$2.2M
+48%
Rental Income
+$1.9M
Total Position
$4.1M
+173%
10.6%/yr
Year 20
Capital Value
$3.3M
+119%
Rental Income
+$4.4M
Total Position
$7.7M
+413%
8.5%/yr
Year 30
Capital Value
$4.9M
+224%
Rental Income
+$7.8M
Total Position
$12.7M
+744%
7.4%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
10.9% annual return
Occupancy
Good
68% average occupancy
Nightly Rate
Strong
$1292 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1320 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 10.9% — outperforms most villas in this market
Premium nightly rate of $1292 — positioned in the top tier
Generous 1320 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
STR zoning not confirmed — verify before purchasing for short-term rental use

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.
10.4%
$14,095/mo
58% occ.
12.6%
$17,086/mo
68% occ.
14.8%
$20,076/mo
current
78% occ.
17.0%
$23,067/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.