House in Montinhos da Luz, Luz
House in Montinhos da Luz, Luz — image 2House in Montinhos da Luz, Luz — image 3House in Montinhos da Luz, Luz — image 4House in Montinhos da Luz, Luz — image 5
Grade Bvillaluxury

House in Montinhos da Luz, Luz

Lagos · Western Algarve ·

€1.9M

Asking Price (EUR)

2.1%

True Net Yield (Owner, all-in)

1.4%

True Net Yield (Managed, all-in)

3.2%

True Gross Yield

66%

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: €67,862/yr
Average Daily Rate: €281
Payback Period: 34.0 years
5-yr Capital Value: €2.5M
10-yr Capital Value: €3.0M
Brixfox Score: 64.2 / 100
Comparable Properties: 32
Data Confidence: 92%
Search Radius: 2 km

True Investment Cost

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

€2.1M

+12.7% over asking

Asking price€1.9M
IMT — Property transfer tax (investment schedule)€142,500
IS — Stamp duty (0.8%)€15,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€28,500
Total acquisition costs€187,450
Renovation€0 — move-in ready
Furnishing & STR launch (3bd × €8000 base, luxury tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€53,300
All-in investment (incl. renovation & furnishing)€2.1M

Gross yield (asking price)

3.6%

True gross yield (all-in)

3.2%

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: 4
Building: 224 m²
Land: 790 m²
Style: modern
Condition: new-build
Energy Certificate: A
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

infinity poollarge glass windowsflat roof designterraced landscaping

Score Breakdown

ROI
11.19
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
6.63
Payback Speed
0
STR Suitability
3

Description

Welcome to this modern villa under construction with sea views and pool. The villa is located in the picturesque, former fishing village of Praia de Luz just west of the town of Lagos on Portugal's south coast. The villa is not far from the center, so that the promenade with its restaurants, the beach as well as small

Location

📍 37.0900°N, 8.7457°W

· Lagos, Algarve, Portugal

View on Ocean Horizon, Lda. →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Montinhos da Luz, Luz

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

Grade B investment — short-term rental yields 2.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score64
GradeB
Brixfox Intelligence
64BStrong
Score Breakdown
ROI & Yield70%
Capital Growth67%
Risk Profile66%
Market Demand64%

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
+7.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$525K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
2.4%
$4,074/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
11 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
42.2 yr
Rental only

Property details

Energy: A
Condition: new-build

Description

Welcome to this modern villa under construction with sea views and pool. The villa is located in the picturesque, former fishing village of Praia de Luz just west of the town of Lagos on Portugal's south coast. The villa is not far from the center, so that the promenade with its restaurants, the beach as well as small

Income Breakdown

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Nightly Rate (ADR)
$417/night
50% ($192)Brixfox estimate($417/night)200% ($767)
Occupancy
66%
10%Brixfox estimate(66%)100%

Short-Term Rental

Yearly income
$48,889
Airbnb data$417/night · 66% occupancy
Rental income
$417/night · 66% occ.
$100,968
Running costs (20%)
Utilities, cleaning, maintenance
-$20,194
Income tax (10%)
Indonesian rental income tax
-$28,271
Property tax
Annual property tax
-$3,614
Net income
2.4% ROI
$48,889

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$2,065,217
IMT (transfer tax, investment schedule)$154,891
Imposto de Selo (stamp duty)$16,522
Notary & registration$1,359
Legal / due diligence$30,978
Total acquisition costs$203,750
RenovationMove-in ready
Furnishing & STR launch
3bd × $8,696 base + appliances, electronics, outdoor, licence, photography, linens.		$55,761
All-in investment$2,324,728

Gross yield (asking)

4.9%

True gross yield (all-in)

4.3%

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.

$9.5M$7.2M$4.8M$2.4M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.9M
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 28: rental income alone has repaid the full purchase price.
2x return
Year 13: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$2.3M
+22%
Rental Income
+$239K
Total Position
$2.6M
+34%
6.1%/yr
Year 10
Capital Value
$2.8M
+48%
Rental Income
+$516K
Total Position
$3.3M
+75%
5.8%/yr
Year 20
Capital Value
$4.2M
+119%
Rental Income
+$1.2M
Total Position
$5.4M
+183%
5.3%/yr
Year 30
Capital Value
$6.2M
+224%
Rental Income
+$2.1M
Total Position
$8.3M
+337%
5.0%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Weak
2.4% annual return
Occupancy
Good
66% average occupancy
Nightly Rate
Strong
$384 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Strong
790 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $384 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates
Generous 790 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 2.4% is below the market average — model your cashflow carefully

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

46% occ.
2.2%
$3,812/mo
56% occ.
2.7%
$4,701/mo
66% occ.
3.2%
$5,589/mo
current
76% occ.
3.8%
$6,477/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.