Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz
Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz — image 2Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz — image 3Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz — image 4Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz — image 5
Grade Avillaluxury

Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz

Lagos · Western Algarve ·

€1.4M

Asking Price (EUR)

4.4%

True Net Yield (Owner, all-in)

3.0%

True Net Yield (Managed, all-in)

6.7%

True Gross Yield

43%

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: €106,864/yr
Average Daily Rate: €674
+33.0% vs area baselineImage quality 8/10 (+3%), Modern/contemporary style (+12%), Has pool (0%), Has view (+10%), Luxury finish (+8%)
Payback Period: 16.3 years
5-yr Capital Value: €1.8M
10-yr Capital Value: €2.2M
Brixfox Score: 76 / 100
Comparable Properties: 12
Data Confidence: 82%
Search Radius: 2 km

True Investment Cost

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

€1.6M

+14.3% over asking

Asking price€1.4M
IMT — Property transfer tax (investment schedule)€104,625
IS — Stamp duty (0.8%)€11,160
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€20,925
Total acquisition costs€137,960
Renovation€0 — move-in ready
Furnishing & STR launch (4bd × €8000 base, luxury tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€62,150
All-in investment (incl. renovation & furnishing)€1.6M

Gross yield (asking price)

7.7%

True gross yield (all-in)

6.7%

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: 4
Bathrooms: 4
Building: 275 m²
Land: 917 m²
Style: contemporary
Condition: excellent
Year Built: 2002
Energy Certificate: B-
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large freeform swimming poolmultiple outdoor living areasoutdoor kitchen with BBQupper-level terrace with lounge seatingdecorative large white urns by pool

Score Breakdown

ROI
17.24
Visual Appeal
14.2
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
4.35
Payback Speed
2
STR Suitability
3

Description

4 bedroom villa with SEA VIEW and heated pool in Praia da Luz, Lagos, Algarve Luxury villa with SEA VIEW, located just a few minutes' walk from the beach and downtown Praia da Luz, Lagos, Algarve. Located on a 917 m² lot with excellent sun exposure, this house is divided into two floors. The ground floor features a

Location

📍 37.0905°N, 8.7364°W

· Lagos, Algarve, Portugal

View on Sublime Algarve →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua do Parque Residencial Monte Lemos, Praia da Luz, Luz

Inventory
4 Beds
Bathrooms
4 Baths
Built Area
275 m²
Land Plot
917 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 5.1% 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
+10.7%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$385K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.1%
$6,489/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
19.5 yr
Rental only

Property details

Year built: 2002
Energy: B-
Condition: excellent

Description

4 bedroom villa with SEA VIEW and heated pool in Praia da Luz, Lagos, Algarve Luxury villa with SEA VIEW, located just a few minutes' walk from the beach and downtown Praia da Luz, Lagos, Algarve. Located on a 917 m² lot with excellent sun exposure, this house is divided into two floors. The ground floor features a

Income Breakdown

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Nightly Rate (ADR)
$976/night
50% ($449)Brixfox estimate($976/night)200% ($1797)
Occupancy
43%
10%Brixfox estimate(43%)100%

Short-Term Rental

Yearly income
$77,872
Airbnb data$976/night · 43% occupancy
Rental income
$976/night · 43% occ.
$154,857
Running costs (20%)
Utilities, cleaning, maintenance
-$30,971
Income tax (10%)
Indonesian rental income tax
-$43,360
Property tax
Annual property tax
-$2,654
Net income
5.1% ROI
$77,872

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$1,516,304
IMT (transfer tax, investment schedule)$113,723
Imposto de Selo (stamp duty)$12,130
Notary & registration$1,359
Legal / due diligence$22,745
Total acquisition costs$149,957
RenovationMove-in ready
Furnishing & STR launch
4bd × $8,696 base + appliances, electronics, outdoor, licence, photography, linens.		$65,380
All-in investment$1,731,641

Gross yield (asking)

10.2%

True gross yield (all-in)

8.9%

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.

$9.1M$6.8M$4.6M$2.3M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.4M
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 16: 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
$1.7M
+22%
Rental Income
+$380K
Total Position
$2.1M
+49%
8.3%/yr
Year 10
Capital Value
$2.1M
+48%
Rental Income
+$821K
Total Position
$2.9M
+107%
7.5%/yr
Year 20
Capital Value
$3.1M
+119%
Rental Income
+$1.9M
Total Position
$5.0M
+257%
6.6%/yr
Year 30
Capital Value
$4.5M
+224%
Rental Income
+$3.4M
Total Position
$7.9M
+469%
6.0%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
5.1% annual return
Occupancy
Weak
43% average occupancy
Nightly Rate
Strong
$898 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Strong
917 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $898 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates
Generous 917 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 43% — 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.
4.8%
$6,016/mo
40% occ.
6.4%
$8,094/mo
43% occ.
7.0%
$8,812/mo
current
53% occ.
8.6%
$10,891/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.