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 C+villabudget

House in Falfeira - Monte Funchal, Lagos

Lagos · Western Algarve ·

€6.5M

Asking Price (EUR)

0.5%

True Net Yield (Owner, all-in)

0.3%

True Net Yield (Managed, all-in)

0.7%

True Gross Yield

45%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.3 months ago and is currently at 11% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.73, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €52,598/yr
Average Daily Rate: €324
-18.0% vs area baselineImage quality 4/10 (-9%), Portuguese-traditional style (+5%), No pool (-12%), Has view (+10%), Budget finish (-12%)
Payback Period: 150.5 years
5-yr Capital Value: €8.5M
10-yr Capital Value: €10.4M
Brixfox Score: 48.5 / 100
Comparable Properties: 12
Data Confidence: 78%
Search Radius: 2 km

True Investment Cost

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

€7.2M

+11.3% over asking

Asking price€6.5M
IMT — Property transfer tax (investment schedule)€487,500
IS — Stamp duty (0.8%)€52,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€97,500
Total acquisition costs€638,250
Renovation (est. €900/m² × 82 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€73,800
(€57,400–€90,200)
Furnishing & STR launch (4bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€25,550
All-in investment (incl. renovation & furnishing)€7.2M

Gross yield (asking price)

0.8%

True gross yield (all-in)

0.7%

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
Building: 82 m²
Style: portuguese-traditional
Condition: needs-renovation
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional blue and white exteriorrural setting

Score Breakdown

ROI
8
Visual Appeal
6
Ownership Security
13
Location
10.44
Land & Space
3.64
Rental Demand
4.45
Payback Speed
0
STR Suitability
3

Description

Situated in an excellent, much sought after area, this property is only a 5 minute drive from the center of Lagos and all it's amenities, the Lagos Marina and some of the most beautiful beaches of the Algarve. With a total area of 34.640 m2, the property is inserted in the urban perimeter of the city of Lagos, with the

Location

📍 37.1028°N, 8.6731°W

· Lagos, Algarve, Portugal

View on Marcela Propriedades →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Falfeira - Monte Funchal, Lagos

Inventory
4 Beds
Bathrooms
0 Baths
Built Area
82 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade C+ investment — short-term rental yields 0.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score49
GradeC+
Brixfox Intelligence
49C+Moderate
Score Breakdown
ROI & Yield54%
Capital Growth51%
Risk Profile52%
Market Demand49%

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
+5.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$1.8M in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
0.4%
$2,349/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
14 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
—
Rental only

Property details

Condition: needs-renovation

Description

Situated in an excellent, much sought after area, this property is only a 5 minute drive from the center of Lagos and all it's amenities, the Lagos Marina and some of the most beautiful beaches of the Algarve. With a total area of 34.640 m2, the property is inserted in the urban perimeter of the city of Lagos, with the

Income Breakdown

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Nightly Rate (ADR)
$480/night
50% ($221)Brixfox estimate($480/night)200% ($883)
Occupancy
45%
10%Brixfox estimate(45%)100%

Short-Term Rental

Yearly income
$28,192
Airbnb data$480/night · 45% occupancy
Rental income
$480/night · 45% occ.
$77,993
Running costs (20%)
Utilities, cleaning, maintenance
-$15,599
Income tax (10%)
Indonesian rental income tax
-$21,838
Property tax
Annual property tax
-$12,364
Net income
0.4% ROI
$28,192

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$7,065,217
IMT (transfer tax, investment schedule)$529,891
Imposto de Selo (stamp duty)$56,522
Notary & registration$1,359
Legal / due diligence$105,978
Total acquisition costs$693,750
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$80,217
($62,391–$98,043)
Furnishing & STR launch
4bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$25,598
All-in investment$7,864,783

Gross yield (asking)

1.1%

True gross yield (all-in)

1.0%

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.

$26.2M$19.6M$13.1M$6.5M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 302x ReturnToday: $6.5M
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.
2x return
Year 17: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$7.9M
+22%
Rental Income
+$138K
Total Position
$8.0M
+24%
4.4%/yr
Year 10
Capital Value
$9.6M
+48%
Rental Income
+$297K
Total Position
$9.9M
+53%
4.3%/yr
Year 20
Capital Value
$14.2M
+119%
Rental Income
+$697K
Total Position
$14.9M
+130%
4.2%/yr
Year 30
Capital Value
$21.1M
+224%
Rental Income
+$1.2M
Total Position
$22.3M
+243%
4.2%/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
0.4% annual return
Occupancy
Weak
45% average occupancy
Nightly Rate
Strong
$442 per night
Visual Appeal
Weak
3/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $442 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 0.4% 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.
0.3%
$2,035/mo
40% occ.
0.5%
$3,057/mo
45% occ.
0.6%
$3,519/mo
current
55% occ.
0.8%
$4,541/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.