T2 flat in Praia da Luz, Luz
T2 flat in Praia da Luz, Luz — image 2T2 flat in Praia da Luz, Luz — image 3T2 flat in Praia da Luz, Luz — image 4T2 flat in Praia da Luz, Luz — image 5
Grade Bapartmentmid-range

T2 flat in Praia da Luz, Luz

Lagos · Western Algarve ·

€550,000

Asking Price (EUR)

4.1%

True Net Yield (Owner, all-in)

2.8%

True Net Yield (Managed, all-in)

6.3%

True Gross Yield

59%

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: €39,321/yr
Average Daily Rate: €183
Payback Period: 17.4 years
5-yr Capital Value: €722,692
10-yr Capital Value: €879,265
Brixfox Score: 64 / 100
Comparable Properties: 81
Data Confidence: 96%
Search Radius: 2 km

True Investment Cost

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

€624,210

+13.5% over asking

Asking price€550,000
IMT — Property transfer tax (investment schedule)€31,830
IS — Stamp duty (0.8%)€4,400
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€8,250
Total acquisition costs€45,730
Renovation (est. €55/m² × 66 m²)
Light touch-ups — paint, fixtures, deep clean.		€3,630
(€1,980–€5,280)
Furnishing & STR launch (2bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€24,850
All-in investment (incl. renovation & furnishing)€624,210

Gross yield (asking price)

7.2%

True gross yield (all-in)

6.3%

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: 2
Bathrooms: 2
Building: 66 m²
Style: portuguese-traditional
Condition: good
Year Built: 1989
Energy Certificate: C
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional terracotta roof tileswhite washed facadesbalconies with sea views

Score Breakdown

ROI
16.61
Visual Appeal
10
Ownership Security
13
Location
10.2
Land & Space
3.32
Rental Demand
5.9
Payback Speed
2
STR Suitability
3

Description

With a superb location close to the beautiful Luz beach and within walking distance of all the local attractions and amenities, this sea view duplex, currently undergoing a complete refurb is your dream property in the sun. The property will be ready in the Spring of this year and is being remodelled by a local develo

Location

📍 37.0878°N, 8.7310°W

· Lagos, Algarve, Portugal

View on Casas do Barlavento →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

T2 flat in Praia da Luz, Luz

Inventory
2 Beds
Bathrooms
2 Baths
Built Area
66 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 4.8% 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
+10.3%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$152K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
4.8%
$2,382/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
20.9 yr
Rental only

Property details

Year built: 1989
Energy: C
Condition: good

Description

With a superb location close to the beautiful Luz beach and within walking distance of all the local attractions and amenities, this sea view duplex, currently undergoing a complete refurb is your dream property in the sun. The property will be ready in the Spring of this year and is being remodelled by a local develo

Income Breakdown

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Nightly Rate (ADR)
$265/night
50% ($122)Brixfox estimate($265/night)200% ($487)
Occupancy
59%
10%Brixfox estimate(59%)100%

Short-Term Rental

Yearly income
$28,582
Airbnb data$265/night · 59% occupancy
Rental income
$265/night · 59% occ.
$56,977
Running costs (20%)
Utilities, cleaning, maintenance
-$11,395
Income tax (10%)
Indonesian rental income tax
-$15,954
Property tax
Annual property tax
-$1,046
Net income
4.8% ROI
$28,582

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$597,826
IMT (transfer tax, investment schedule)$34,598
Imposto de Selo (stamp duty)$4,783
Notary & registration$1,359
Legal / due diligence$8,967
Total acquisition costs$49,707
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$3,946
($2,152–$5,739)
Furnishing & STR launch
2bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$27,011
All-in investment$678,489

Gross yield (asking)

9.5%

True gross yield (all-in)

8.4%

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.

$3.5M$2.6M$1.7M$873K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $550K
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 17: 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
$669K
+22%
Rental Income
+$140K
Total Position
$809K
+47%
8.0%/yr
Year 10
Capital Value
$814K
+48%
Rental Income
+$301K
Total Position
$1.1M
+103%
7.3%/yr
Year 20
Capital Value
$1.2M
+119%
Rental Income
+$707K
Total Position
$1.9M
+248%
6.4%/yr
Year 30
Capital Value
$1.8M
+224%
Rental Income
+$1.3M
Total Position
$3.0M
+452%
5.9%/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
Average
4.8% annual return
Occupancy
Average
59% average occupancy
Nightly Rate
Strong
$244 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $244 — 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 4.8% 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

39% occ.
4.2%
$2,109/mo
49% occ.
5.4%
$2,673/mo
59% occ.
6.5%
$3,237/mo
current
69% occ.
7.6%
$3,800/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.