Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira
Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira — image 2Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira — image 3Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira — image 4Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira — image 5
Grade Bvillabudget

Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira

Tavira · Eastern Algarve ·

€250,000

Asking Price (EUR)

4.5%

True Net Yield (Owner, all-in)

3.1%

True Net Yield (Managed, all-in)

7.0%

True Gross Yield

36%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 months ago and is currently at 18% 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: €22,182/yr
Average Daily Rate: €170
-25.0% vs area baselineImage quality 5/10 (-6%), Portuguese-traditional style (+5%), No pool (-12%), Budget finish (-12%)
Payback Period: 14.1 years
5-yr Capital Value: €328,496
10-yr Capital Value: €399,666
Brixfox Score: 61 / 100
Comparable Properties: 5
Data Confidence: 70%
Search Radius: 2 km

True Investment Cost

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

€317,597

+27.0% over asking

Asking price€250,000
IMT — Property transfer tax (investment schedule)€8,497
IS — Stamp duty (0.8%)€2,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€3,750
Total acquisition costs€15,497
Renovation (est. €350/m² × 95 m²)
Cosmetic refresh — flooring, paint, bathroom & kitchen updates.		€33,250
(€23,750–€42,750)
Furnishing & STR launch (2bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€18,850
All-in investment (incl. renovation & furnishing)€317,597

Gross yield (asking price)

8.9%

True gross yield (all-in)

7.0%

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: 95 m²
Style: portuguese-traditional
Condition: fair
Year Built: 1999
Energy Certificate: D

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional yellow facadeoutdoor dining area

Score Breakdown

ROI
18.7
Visual Appeal
7.4
Ownership Security
13
Location
8.4
Land & Space
3.9
Rental Demand
3.57
Payback Speed
3
STR Suitability
3

Description

We present this charming property located in the calm and authentic Luz de Tavira, perfect for those seeking a retreat in the Algarve with charm, comfort, and investment potential. The main house features 2 bedrooms and a total area of 52.50 sqm, standing out for its rustic and cozy style, visible in the wooden ceilin

Location

📍 37.0870°N, 8.7290°W

· Tavira, Algarve, Portugal

View on Century21 Realty Art 3 →Also on Idealista.pt
Idealista.pt
Tavira / Eastern Algarve

Terraced house in Estrada da Palmeira, 422 g, Luz de Tavira

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

Grade B investment — short-term rental yields 6.0% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score61
GradeB
Brixfox Intelligence
61BStrong
Score Breakdown
ROI & Yield67%
Capital Growth64%
Risk Profile63%
Market Demand61%

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
+4.3%
+$54K in 5yr (+22%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
6.0%
$1,348/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
16.8 yr
Rental only

Property details

Year built: 1999
Energy: D
Condition: fair

Description

We present this charming property located in the calm and authentic Luz de Tavira, perfect for those seeking a retreat in the Algarve with charm, comfort, and investment potential. The main house features 2 bedrooms and a total area of 52.50 sqm, standing out for its rustic and cozy style, visible in the wooden ceilin

Income Breakdown

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Nightly Rate (ADR)
$246/night
50% ($113)Brixfox estimate($246/night)200% ($452)
Occupancy
36%
10%Brixfox estimate(36%)100%

Short-Term Rental

Yearly income
$16,182
Airbnb data$246/night · 36% occupancy
Rental income
$246/night · 36% occ.
$32,034
Running costs (20%)
Utilities, cleaning, maintenance
-$6,407
Income tax (10%)
Indonesian rental income tax
-$8,969
Property tax
Annual property tax
-$476
Net income
6.0% ROI
$16,182

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$271,739
IMT (transfer tax, investment schedule)$9,236
Imposto de Selo (stamp duty)$2,174
Notary & registration$1,359
Legal / due diligence$4,076
Total acquisition costs$16,845
Renovation (~$380/m²)
Cosmetic refresh — flooring, paint, bathroom & kitchen updates.		$36,141
($25,815–$46,467)
Furnishing & STR launch
2bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$18,315
All-in investment$343,040

Gross yield (asking)

11.8%

True gross yield (all-in)

9.3%

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 Tavira.

$1.7M$1.3M$873K$437K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $250K
Capital appreciation
Property value growing at +4%/yr based on Tavira 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 14: 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
$304K
+22%
Rental Income
+$79K
Total Position
$383K
+53%
8.9%/yr
Year 10
Capital Value
$370K
+48%
Rental Income
+$171K
Total Position
$541K
+116%
8.0%/yr
Year 20
Capital Value
$548K
+119%
Rental Income
+$400K
Total Position
$948K
+279%
6.9%/yr
Year 30
Capital Value
$811K
+224%
Rental Income
+$708K
Total Position
$1.5M
+508%
6.2%/yr

Location

Tavira

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
6.0% annual return
Occupancy
Weak
36% average occupancy
Nightly Rate
Strong
$226 per night
Visual Appeal
Average
4/10 instagrammability
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $226 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 36% — factor in seasonal gaps

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
6.8%
$1,530/mo
40% occ.
9.1%
$2,053/mo
36% occ.
8.1%
$1,829/mo
current
46% occ.
10.4%
$2,352/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.