Detached house in Espiche, Luz
Detached house in Espiche, Luz — image 2Detached house in Espiche, Luz — image 3Detached house in Espiche, Luz — image 4Detached house in Espiche, Luz — image 5
Grade B+villamid-range

Detached house in Espiche, Luz

Lagos · Western Algarve ·

€715,000

Asking Price (EUR)

3.5%

True Net Yield (Owner, all-in)

2.4%

True Net Yield (Managed, all-in)

5.4%

True Gross Yield

37%

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: €55,562/yr
Average Daily Rate: €409
Payback Period: 16.1 years
5-yr Capital Value: €939,499
10-yr Capital Value: €1.1M
Brixfox Score: 65.6 / 100
Comparable Properties: 8
Data Confidence: 72%
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

+43.8% over asking

Asking price€715,000
IMT — Property transfer tax (investment schedule)€42,900
IS — Stamp duty (0.8%)€5,720
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€10,725
Total acquisition costs€60,595
Renovation (est. €350/m² × 614 m²)
Cosmetic refresh — flooring, paint, bathroom & kitchen updates.		€214,900
(€153,500–€276,300)
Furnishing & STR launch (4bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€37,550
All-in investment (incl. renovation & furnishing)€1.0M

Gross yield (asking price)

7.8%

True gross yield (all-in)

5.4%

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: 4
Bathrooms: 3
Building: 614 m²
Land: 615 m²
Style: portuguese-traditional
Condition: fair
Year Built: 1951
Energy Certificate: Not indicated
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AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

outdoor barbecue areaterraced gardentraditional tiled roof

Score Breakdown

ROI
17.35
Visual Appeal
8.8
Ownership Security
13
Location
8.4
Land & Space
9.34
Rental Demand
3.72
Payback Speed
2
STR Suitability
3

Description

Traditional Algarvian Cottage Property in Espiche, Luz – Excellent Investment Opportunity Situated in the heart of Espiche, Luz, this charming traditional Algarvian cottage offers a rare combination of character, versatility, and investment potential. The property comprises T2+2 bedrooms and benefits from four independ

Location

📍 37.1015°N, 8.7389°W

· Lagos, Algarve, Portugal

View on Algarve Sunset Properties →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Espiche, Luz

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

Grade B+ investment — short-term rental yields 5.2% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score66
GradeB+
Brixfox Intelligence
66B+Strong
Score Breakdown
ROI & Yield73%
Capital Growth69%
Risk Profile68%
Market Demand66%

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
+10.7%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$198K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.2%
$3,367/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
19.2 yr
Rental only

Property details

Year built: 1951
Energy: Not indicated
Condition: fair

Description

Traditional Algarvian Cottage Property in Espiche, Luz – Excellent Investment Opportunity Situated in the heart of Espiche, Luz, this charming traditional Algarvian cottage offers a rare combination of character, versatility, and investment potential. The property comprises T2+2 bedrooms and benefits from four independ

Income Breakdown

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Nightly Rate (ADR)
$591/night
50% ($272)Brixfox estimate($591/night)200% ($1088)
Occupancy
37%
10%Brixfox estimate(37%)100%

Short-Term Rental

Yearly income
$40,408
Airbnb data$591/night · 37% occupancy
Rental income
$591/night · 37% occ.
$80,324
Running costs (20%)
Utilities, cleaning, maintenance
-$16,065
Income tax (10%)
Indonesian rental income tax
-$22,491
Property tax
Annual property tax
-$1,360
Net income
5.2% ROI
$40,408

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$777,174
IMT (transfer tax, investment schedule)$46,630
Imposto de Selo (stamp duty)$6,217
Notary & registration$1,359
Legal / due diligence$11,658
Total acquisition costs$65,864
Renovation (~$380/m²)
Cosmetic refresh — flooring, paint, bathroom & kitchen updates.		$233,587
($166,848–$300,326)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$38,641
All-in investment$1,115,266

Gross yield (asking)

10.3%

True gross yield (all-in)

7.2%

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.

$4.7M$3.5M$2.4M$1.2M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $715K
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 16: 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
$870K
+22%
Rental Income
+$197K
Total Position
$1.1M
+49%
8.3%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$426K
Total Position
$1.5M
+108%
7.6%/yr
Year 20
Capital Value
$1.6M
+119%
Rental Income
+$999K
Total Position
$2.6M
+259%
6.6%/yr
Year 30
Capital Value
$2.3M
+224%
Rental Income
+$1.8M
Total Position
$4.1M
+472%
6.0%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
5.2% annual return
Occupancy
Weak
37% average occupancy
Nightly Rate
Strong
$544 per night
Visual Appeal
Average
5/10 instagrammability
Size & Space
Strong
615 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $544 — positioned in the top tier
Generous 615 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
Occupancy at 37% — factor in seasonal gaps

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
5.7%
$3,664/mo
40% occ.
7.6%
$4,923/mo
37% occ.
7.1%
$4,572/mo
current
47% occ.
9.0%
$5,831/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.