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

Detached house in Praia da Luz, Luz

Lagos · Western Algarve ·

€3.0M

Asking Price (EUR)

1.8%

True Net Yield (Owner, all-in)

1.2%

True Net Yield (Managed, all-in)

2.8%

True Gross Yield

41%

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: €92,248/yr
Average Daily Rate: 611
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 40.6 years
5-yr Capital Value: €3.9M
10-yr Capital Value: €4.8M
Brixfox Score: 65.7 / 100
Comparable Properties: 13
Data Confidence: 82%
Search Radius: 2 km

True Investment Cost

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

€3.4M

+12.0% 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 × 330)
Light touch-ups — paint, fixtures, deep clean.
€18,150
(€9,900€26,400)
Furnishing & STR launch (5bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.
€45,400
All-in investment (incl. renovation & furnishing)€3.4M

Gross yield (asking price)

3.1%

True gross yield (all-in)

2.8%

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: 5
Bathrooms: 5
Building: 330
Land: 3815
Style: portuguese-traditional
Condition: good
Year Built: 1970
Energy Certificate: D
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large private gardenterraced pool area with sea viewextensive outdoor patio space

Score Breakdown

ROI
10.52
Visual Appeal
12.8
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
4.14
Payback Speed
0
STR Suitability
3

Description

This stunning property must be seen to be appreciated. Situated in a very secluded location, just a 10-minute walk from Praia da Luz beach and 5 minutes from Batista supermarket, the property is tranquility itself. Set on a large plot of 3815 sqm, the main house is an imposing structure that stands out for its elegant

Location

📍 37.0902°N, 8.7288°W

· Lagos, Algarve, Portugal

Idealista.pt
Lagos / Western Algarve

Detached house in Praia da Luz, Luz

Inventory
5 Beds
Bathrooms
5 Baths
Built Area
330 m²
Land Plot
3815 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 2.0% 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
+7.5%
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
2.0%
$5,304/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
51.1 yr
Rental only

Property details

Year built: 1970
Energy: D
Condition: good

Description

This stunning property must be seen to be appreciated. Situated in a very secluded location, just a 10-minute walk from Praia da Luz beach and 5 minutes from Batista supermarket, the property is tranquility itself. Set on a large plot of 3815 sqm, the main house is an imposing structure that stands out for its elegant

Income Breakdown

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Nightly Rate (ADR)
$883/night
50% ($406)Brixfox estimate($883/night)200% ($1624)
Occupancy
41%
10%Brixfox estimate(41%)100%

Short-Term Rental

Yearly income
$63,651
Airbnb data$883/night · 41% occupancy
Rental income
$883/night · 41% occ.
$133,362
Running costs (20%)
Utilities, cleaning, maintenance
-$26,672
Income tax (10%)
Indonesian rental income tax
-$37,341
Property tax
Annual property tax
-$5,697
Net income
2.0% ROI
$63,651

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.
$19,728
($10,761$28,696)
Furnishing & STR launch
5bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.
$47,174
All-in investment$3,642,728

Gross yield (asking)

4.1%

True gross yield (all-in)

3.7%

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.

$14.4M$10.8M$7.2M$3.6M$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 14: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$3.6M
+22%
Rental Income
+$311K
Total Position
$4.0M
+32%
5.7%/yr
Year 10
Capital Value
$4.4M
+48%
Rental Income
+$671K
Total Position
$5.1M
+70%
5.5%/yr
Year 20
Capital Value
$6.6M
+119%
Rental Income
+$1.6M
Total Position
$8.1M
+172%
5.1%/yr
Year 30
Capital Value
$9.7M
+224%
Rental Income
+$2.8M
Total Position
$12.5M
+317%
4.9%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Weak
2.0% annual return
Occupancy
Weak
41% average occupancy
Nightly Rate
Strong
$812 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
3815 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $812 — positioned in the top tier
Generous 3815 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 2.0% 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.
1.9%
$5,164/mo
40% occ.
2.6%
$7,043/mo
41% occ.
2.7%
$7,305/mo
current
51% occ.
3.4%
$9,184/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.