House in Praia da Luz, Luz
House in Praia da Luz, Luz — image 2House in Praia da Luz, Luz — image 3House in Praia da Luz, Luz — image 4House in Praia da Luz, Luz — image 5
Grade Bvillamid-range

House in Praia da Luz, Luz

Lagos · Western Algarve ·

€3.0M

Asking Price (EUR)

1.0%

True Net Yield (Owner, all-in)

0.7%

True Net Yield (Managed, all-in)

1.6%

True Gross Yield

49%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.9 months ago and is currently at 15% 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: €53,932/yr
Average Daily Rate: €302
-8.0% vs area baselineImage quality 6/10 (-3%), Dated style (-15%), Has pool (0%), Has view (+10%)
Payback Period: 68.8 years
5-yr Capital Value: €3.9M
10-yr Capital Value: €4.8M
Brixfox Score: 62.6 / 100
Comparable Properties: 27
Data Confidence: 96%
Search Radius: 2 km

True Investment Cost

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

€3.3M

+11.8% over asking

Asking price€3.0M
IMT — Property transfer tax (investment schedule)€224,625
IS — Stamp duty (0.8%)€23,960
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€44,925
Total acquisition costs€294,760
Renovation (est. €55/m² × 452 m²)
Light touch-ups — paint, fixtures, deep clean.		€24,860
(€13,560–€36,160)
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)€3.3M

Gross yield (asking price)

1.8%

True gross yield (all-in)

1.6%

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: 3
Building: 452 m²
Land: 3529 m²
Style: dated
Condition: good
Year Built: 1969
Energy Certificate: D
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

ocean viewprivate poollarge outdoor patiogarden area

Score Breakdown

ROI
9.11
Visual Appeal
10.4
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
4.9
Payback Speed
0
STR Suitability
3

Description

Exceptionally unique single storey property with stunning views over the Atlantic Ocean and famous Black Rock of Praia da Luz. Ideally situated in one of the most sought after oldest residential areas in the very centre of the village of Praia da Luz, but offers both privacy and tranquillity, yet still only a 5/10 min

Location

📍 37.0915°N, 8.7296°W

· Lagos, Algarve, Portugal

View on O&O Real Estate →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Praia da Luz, Luz

Inventory
3 Beds
Bathrooms
3 Baths
Built Area
452 m²
Land Plot
3529 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 1.1% 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
+6.6%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$827K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
1.1%
$2,930/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
13 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
92.6 yr
Rental only

Property details

Year built: 1969
Energy: D
Condition: good

Description

Exceptionally unique single storey property with stunning views over the Atlantic Ocean and famous Black Rock of Praia da Luz. Ideally situated in one of the most sought after oldest residential areas in the very centre of the village of Praia da Luz, but offers both privacy and tranquillity, yet still only a 5/10 min

Income Breakdown

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Nightly Rate (ADR)
$439/night
50% ($202)Brixfox estimate($439/night)200% ($809)
Occupancy
49%
10%Brixfox estimate(49%)100%

Short-Term Rental

Yearly income
$35,155
Airbnb data$439/night · 49% occupancy
Rental income
$439/night · 49% occ.
$78,561
Running costs (20%)
Utilities, cleaning, maintenance
-$15,712
Income tax (10%)
Indonesian rental income tax
-$21,997
Property tax
Annual property tax
-$5,697
Net income
1.1% ROI
$35,155

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$3,255,435
IMT (transfer tax, investment schedule)$244,158
Imposto de Selo (stamp duty)$26,043
Notary & registration$1,359
Legal / due diligence$48,832
Total acquisition costs$320,391
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$27,022
($14,739–$39,304)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$35,543
All-in investment$3,638,391

Gross yield (asking)

2.4%

True gross yield (all-in)

2.2%

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.

$12.9M$9.7M$6.5M$3.2M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 302x ReturnToday: $3.0M
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 15: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$3.6M
+22%
Rental Income
+$172K
Total Position
$3.8M
+27%
5.0%/yr
Year 10
Capital Value
$4.4M
+48%
Rental Income
+$371K
Total Position
$4.8M
+60%
4.8%/yr
Year 20
Capital Value
$6.6M
+119%
Rental Income
+$869K
Total Position
$7.4M
+148%
4.6%/yr
Year 30
Capital Value
$9.7M
+224%
Rental Income
+$1.5M
Total Position
$11.3M
+276%
4.5%/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
1.1% annual return
Occupancy
Average
49% average occupancy
Nightly Rate
Strong
$404 per night
Visual Appeal
Good
6/10 instagrammability
Size & Space
Strong
3529 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $404 — positioned in the top tier
Generous 3529 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 1.1% is below 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

30% occ.
0.9%
$2,332/mo
40% occ.
1.2%
$3,268/mo
49% occ.
1.5%
$4,108/mo
current
59% occ.
1.9%
$5,043/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.