House in Praia da Luz, Luz
House in Praia da Luz, Luz — image 2House in Praia da Luz, Luz — image 3House in Praia da Luz, Luz — image 4House in Praia da Luz, Luz — image 5
Grade Avillamid-range

House in Praia da Luz, Luz

Lagos · Western Algarve ·

€1.2M

Asking Price (EUR)

4.8%

True Net Yield (Owner, all-in)

3.3%

True Net Yield (Managed, all-in)

7.4%

True Gross Yield

41%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2 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: €101,930/yr
Average Daily Rate: €686
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 14.7 years
5-yr Capital Value: €1.6M
10-yr Capital Value: €1.9M
Brixfox Score: 76.3 / 100
Comparable Properties: 12
Data Confidence: 84%
Search Radius: 2 km

True Investment Cost

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

€1.4M

+14.9% over asking

Asking price€1.2M
IMT — Property transfer tax (investment schedule)€90,000
IS — Stamp duty (0.8%)€9,600
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€18,000
Total acquisition costs€118,850
Renovation (est. €55/m² × 263 m²)
Light touch-ups — paint, fixtures, deep clean.		€14,465
(€7,890–€21,040)
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)€1.4M

Gross yield (asking price)

8.5%

True gross yield (all-in)

7.4%

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: 4
Building: 263 m²
Land: 1050 m²
Style: portuguese-traditional
Condition: good
Year Built: 1985
Energy Certificate: C
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large private poolsea viewspacious outdoor living areas

Score Breakdown

ROI
18.27
Visual Appeal
12.8
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
4.07
Payback Speed
3
STR Suitability
3

Description

This imposing residence invites relaxation while providing an incomparable lifestyle. Upon entering, there is a large hall, with an elegant marble staircase, which divides the two floors, giving an atmosphere of refinement. Ground floor: A spacious living/dining room with fireplace, mini bar and direct access to the

Location

📍 37.0913°N, 8.7305°W

· Lagos, Algarve, Portugal

View on O&O Real Estate →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Praia da Luz, Luz

Inventory
5 Beds
Bathrooms
4 Baths
Built Area
263 m²
Land Plot
1050 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 5.7% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score76
GradeA
Brixfox Intelligence
76AExcellent
Score Breakdown
ROI & Yield84%
Capital Growth80%
Risk Profile77%
Market Demand76%

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
+11.2%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$332K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.7%
$6,210/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
17.5 yr
Rental only

Property details

Year built: 1985
Energy: C
Condition: good

Description

This imposing residence invites relaxation while providing an incomparable lifestyle. Upon entering, there is a large hall, with an elegant marble staircase, which divides the two floors, giving an atmosphere of refinement. Ground floor: A spacious living/dining room with fireplace, mini bar and direct access to the

Income Breakdown

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Nightly Rate (ADR)
$994/night
50% ($457)Brixfox estimate($994/night)200% ($1830)
Occupancy
41%
10%Brixfox estimate(41%)100%

Short-Term Rental

Yearly income
$74,521
Airbnb data$994/night · 41% occupancy
Rental income
$994/night · 41% occ.
$147,700
Running costs (20%)
Utilities, cleaning, maintenance
-$29,540
Income tax (10%)
Indonesian rental income tax
-$41,356
Property tax
Annual property tax
-$2,283
Net income
5.7% ROI
$74,521

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$1,304,348
IMT (transfer tax, investment schedule)$97,826
Imposto de Selo (stamp duty)$10,435
Notary & registration$1,359
Legal / due diligence$19,565
Total acquisition costs$129,185
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$15,723
($8,576–$22,870)
Furnishing & STR launch
5bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$47,174
All-in investment$1,496,429

Gross yield (asking)

11.3%

True gross yield (all-in)

9.9%

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.

$8.2M$6.2M$4.1M$2.1M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.2M
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 15: rental income alone has repaid the full purchase price.
2x return
Year 9: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.5M
+22%
Rental Income
+$364K
Total Position
$1.8M
+52%
8.7%/yr
Year 10
Capital Value
$1.8M
+48%
Rental Income
+$786K
Total Position
$2.6M
+114%
7.9%/yr
Year 20
Capital Value
$2.6M
+119%
Rental Income
+$1.8M
Total Position
$4.5M
+273%
6.8%/yr
Year 30
Capital Value
$3.9M
+224%
Rental Income
+$3.3M
Total Position
$7.2M
+496%
6.1%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
5.7% annual return
Occupancy
Weak
41% average occupancy
Nightly Rate
Strong
$915 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1050 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $915 — positioned in the top tier
Generous 1050 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
Occupancy at 41% — factor in seasonal gaps

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

30% occ.
5.7%
$6,162/mo
40% occ.
7.6%
$8,280/mo
current
41% occ.
7.8%
$8,426/mo
current
51% occ.
9.7%
$10,543/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.