Terraced house in Rua Direita, Praia da Luz, Luz
Grade Bvillamid-range

Terraced house in Rua Direita, Praia da Luz, Luz

Lagos · Western Algarve ·

€1.5M

Asking Price (EUR)

2.2%

True Net Yield (Owner, all-in)

1.5%

True Net Yield (Managed, all-in)

3.3%

True Gross Yield

47%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.2 months ago and is currently at 19% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.76, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €56,659/yr
Average Daily Rate: €329
+3.0% vs area baselinePortuguese-traditional style (+5%), No pool (-12%), Has view (+10%)
Payback Period: 33.3 years
5-yr Capital Value: €2.0M
10-yr Capital Value: €2.4M
Brixfox Score: 61.6 / 100
Comparable Properties: 18
Data Confidence: 94%
Search Radius: 2 km

True Investment Cost

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

€1.7M

+12.8% over asking

Asking price€1.5M
IMT — Property transfer tax (investment schedule)€112,500
IS — Stamp duty (0.8%)€12,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€22,500
Total acquisition costs€148,250
Renovation (est. €55/m² × 204 m²)
Light touch-ups — paint, fixtures, deep clean.		€11,220
(€6,120–€16,320)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,200
All-in investment (incl. renovation & furnishing)€1.7M

Gross yield (asking price)

3.8%

True gross yield (all-in)

3.3%

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
Building: 204 m²
Style: portuguese-traditional
Condition: good
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

ocean viewbeachfront accesstraditional terracotta roofs

Score Breakdown

ROI
11.28
Visual Appeal
13.4
Ownership Security
13
Location
10.2
Land & Space
6
Rental Demand
4.72
Payback Speed
0
STR Suitability
3

Description

House with fantastic SEA VIEW, in Praia da Luz, Lagos, Algarve. Development consisting of 6 luxury houses, located in the center of Praia da Luz. The houses offer sea views on all floors and were built with high-quality materials, guaranteeing comfort and efficiency. Main features: Private outdoor pool Terrace with

Location

📍 37.0870°N, 8.7290°W

· Lagos, Algarve, Portugal

View on Sublime Algarve →Also on Idealista.pt
Terraced house in Rua Direita, Praia da Luz, Luz
Idealista.pt
Source verified

Terraced house in Rua Direita, Praia da Luz, Luz

Lagos · Western Algarve · Freehold · Ref BF-5072
Ownership
Freehold
Bedrooms
3
Built area
204 m²
True net yield
4.6%
≈ $4,411/mo net after costs & tax
Brixfox Score 62 · B

Property details

Condition: good

Description

House with fantastic SEA VIEW, in Praia da Luz, Lagos, Algarve. Development consisting of 6 luxury houses, located in the center of Praia da Luz. The houses offer sea views on all floors and were built with high-quality materials, guaranteeing comfort and efficiency. Main features: Private outdoor pool Terrace with

Income Breakdown

Figures are modelled estimates derived from comparable short-term-rental data — not guaranteed returns or financial advice. Do your own due diligence before investing.

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$473/night
50% ($217)Brixfox estimate($473/night)200% ($870)
Occupancy
47%
10%Brixfox estimate(47%)100%

Short-Term Rental

Yearly income
$42,347
Airbnb data$473/night · 47% occupancy
Rental income
$473/night · 47% occ.
$81,437
Running costs (20%)
Utilities, cleaning, maintenance
-$16,287
Income tax (10%)
Indonesian rental income tax
-$22,802
Property tax
Annual property tax
-$0
Net income
2.6% ROI
$42,347

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

Airbnb Comp Analysis

No nearby Airbnb listings found

Investment Returns

After-tax net yield · all-in cost basis

Area estimate

Net Yield · Area Estimate

—

Based on area comps — this property's exact location is unconfirmed

Scenario
Pre-tax
After-tax
Owner-managed
3.0%
—
Fully-managed
3.0%
—
After-tax nets ~28% non-resident IRS on AL income (simplified regime). Yields are on the all-in acquisition cost, not the asking price.

Gross Yield

4.6%

Annual Revenue

$81,437

Income Tax / yr

—

Payback

33 yrs

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Lagos.

$7.7M$5.8M$3.9M$1.9M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.5M
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.
Paid back
Year 26: 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
$1.8M
+22%
Rental Income
+$207K
Total Position
$2.0M
+35%
6.3%/yr
Year 10
Capital Value
$2.2M
+48%
Rental Income
+$447K
Total Position
$2.7M
+78%
5.9%/yr
Year 20
Capital Value
$3.3M
+119%
Rental Income
+$1.0M
Total Position
$4.3M
+189%
5.4%/yr
Year 30
Capital Value
$4.9M
+224%
Rental Income
+$1.9M
Total Position
$6.7M
+348%
5.1%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Weak
2.6% annual return
Occupancy
Average
47% average occupancy
Nightly Rate
Strong
$435 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $435 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 2.6% 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.
2.2%
$3,020/mo
40% occ.
3.0%
$4,027/mo
47% occ.
3.5%
$4,751/mo
current
57% occ.
4.2%
$5,757/mo

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Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Market factors in Portugal may impact actual yields.

Asking price · Freehold
$1,630,435
4.6%
Net yield
View original listing
Source verified · Idealista.pt · listed 22 Apr 2026
Estimates, not financial advice. Yields modelled from real Airbnb data.