Terraced house in Ferragudo, Lagoa (Algarve)
Terraced house in Ferragudo, Lagoa (Algarve) — image 2Terraced house in Ferragudo, Lagoa (Algarve) — image 3Terraced house in Ferragudo, Lagoa (Algarve) — image 4Terraced house in Ferragudo, Lagoa (Algarve) — image 5
Grade Bvillabudget

Terraced house in Ferragudo, Lagoa (Algarve)

Lagoa/Carvoeiro · Central Algarve ·

€873,500

Asking Price (EUR)

3.1%

True Net Yield (Owner, all-in)

2.2%

True Net Yield (Managed, all-in)

4.8%

True Gross Yield

26%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.7 months ago and is currently at 14% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €59,332/yr
Average Daily Rate: €624
-15.0% vs area baselineImage quality 5/10 (-6%), Portuguese-traditional style (+5%), No pool (-12%), Has view (+10%), Budget finish (-12%)
Payback Period: 18.1 years
5-yr Capital Value: €1.1M
10-yr Capital Value: €1.4M
Brixfox Score: 56.4 / 100
Comparable Properties: 5
Data Confidence: 68%
Search Radius: 4 km

True Investment Cost

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

€1.2M

+41.9% over asking

Asking price€873,500
IMT — Property transfer tax (investment schedule)€52,410
IS — Stamp duty (0.8%)€6,988
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€13,103
Total acquisition costs€73,751
Renovation (est. €900/m² × 285 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€256,500
(€199,500–€313,500)
Furnishing & STR launch (7bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€35,600
All-in investment (incl. renovation & furnishing)€1.2M

Gross yield (asking price)

6.8%

True gross yield (all-in)

4.8%

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: 7
Bathrooms: 4
Building: 285 m²
Land: 181 m²
Style: portuguese-traditional
Condition: needs-renovation
Year Built: 1904
Energy Certificate: F
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional cobbled streetrooftop terrace potentialhistoric building facade

Score Breakdown

ROI
16.25
Visual Appeal
7.4
Ownership Security
13
Location
8.4
Land & Space
3.74
Rental Demand
2.61
Payback Speed
2
STR Suitability
3

Description

Located in the charming centre of Ferragudo, this 2-storey building offers an excellent opportunity for those looking for a versatile property with both residential and income potential. Ideal for those who wish to live in a privileged location, with the tranquillity of the Algarve, and at the same time take advantage

Location

📍 37.1255°N, 8.5212°W

· Lagoa/Carvoeiro, Algarve, Portugal

View on Famous Group Real Estate →Also on Idealista.pt
Idealista.pt
Lagoa/Carvoeiro / Central Algarve

Terraced house in Ferragudo, Lagoa (Algarve)

Inventory
7 Beds
Bathrooms
4 Baths
Built Area
285 m²
Land Plot
181 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 4.6% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score56
GradeB
Brixfox Intelligence
56BStrong
Score Breakdown
ROI & Yield62%
Capital Growth59%
Risk Profile58%
Market Demand56%

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
+10.1%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$241K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
4.6%
$3,627/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
21.8 yr
Rental only

Property details

Year built: 1904
Energy: F
Condition: needs-renovation

Description

Located in the charming centre of Ferragudo, this 2-storey building offers an excellent opportunity for those looking for a versatile property with both residential and income potential. Ideal for those who wish to live in a privileged location, with the tranquillity of the Algarve, and at the same time take advantage

Income Breakdown

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Nightly Rate (ADR)
$914/night
50% ($420)Brixfox estimate($914/night)200% ($1681)
Occupancy
26%
10%Brixfox estimate(26%)100%

Short-Term Rental

Yearly income
$43,525
Airbnb data$914/night · 26% occupancy
Rental income
$914/night · 26% occ.
$86,897
Running costs (20%)
Utilities, cleaning, maintenance
-$17,379
Income tax (10%)
Indonesian rental income tax
-$24,331
Property tax
Annual property tax
-$1,662
Net income
4.6% ROI
$43,525

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$949,457
IMT (transfer tax, investment schedule)$56,967
Imposto de Selo (stamp duty)$7,596
Notary & registration$1,359
Legal / due diligence$14,242
Total acquisition costs$80,164
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$278,804
($216,848–$340,761)
Furnishing & STR launch
7bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$36,522
All-in investment$1,344,947

Gross yield (asking)

9.2%

True gross yield (all-in)

6.5%

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 Lagoa/Carvoeiro.

$5.4M$4.1M$2.7M$1.4M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $874K
Capital appreciation
Property value growing at +4%/yr based on Lagoa/Carvoeiro 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 18: 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
$1.1M
+22%
Rental Income
+$213K
Total Position
$1.3M
+46%
7.9%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$459K
Total Position
$1.8M
+101%
7.2%/yr
Year 20
Capital Value
$1.9M
+119%
Rental Income
+$1.1M
Total Position
$3.0M
+242%
6.3%/yr
Year 30
Capital Value
$2.8M
+224%
Rental Income
+$1.9M
Total Position
$4.7M
+442%
5.8%/yr

Location

Lagoa/Carvoeiro

Central Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
4.6% annual return
Occupancy
Weak
26% average occupancy
Nightly Rate
Strong
$841 per night
Visual Appeal
Average
4/10 instagrammability
Size & Space
Average
181 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $841 — 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 4.6% is near 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.
7.2%
$5,698/mo
40% occ.
9.7%
$7,644/mo
26% occ.
6.2%
$4,930/mo
current
36% occ.
8.7%
$6,875/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.