Detached house in Rua José Paleti, Centro, Lagos
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Grade B+villamid-range

Detached house in Rua José Paleti, Centro, Lagos

Lagos · Western Algarve ·

€695,000

Asking Price (EUR)

7.1%

True Net Yield (Owner, all-in)

4.9%

True Net Yield (Managed, all-in)

10.9%

True Gross Yield

39%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 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: €87,272/yr
Average Daily Rate: €615
+3.0% vs area baselinePortuguese-traditional style (+5%), No pool (-12%), Has view (+10%)
Payback Period: 9.9 years
5-yr Capital Value: €913,220
10-yr Capital Value: €1.1M
Brixfox Score: 73.2 / 100
Comparable Properties: 9
Data Confidence: 69%
Search Radius: 3 km

True Investment Cost

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

€801,550

+15.3% over asking

Asking price€695,000
IMT — Property transfer tax (investment schedule)€41,700
IS — Stamp duty (0.8%)€5,560
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€10,425
Total acquisition costs€58,935
Renovation (est. €55/m² × 183 m²)
Light touch-ups — paint, fixtures, deep clean.		€10,065
(€5,490–€14,640)
Furnishing & STR launch (4bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€37,550
All-in investment (incl. renovation & furnishing)€801,550

Gross yield (asking price)

12.6%

True gross yield (all-in)

10.9%

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: 183 m²
Land: 96 m²
Style: portuguese-traditional
Condition: good
Year Built: 2018
Energy Certificate: C
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

rooftop terrace with sea viewtraditional Portuguese azulejo tilesoutdoor dining and lounge areabuilt-in outdoor BBQ

Score Breakdown

ROI
23.25
Visual Appeal
13.4
Ownership Security
13
Location
10.44
Land & Space
2.24
Rental Demand
3.89
Payback Speed
4
STR Suitability
3

Description

In one of the quietest and most noble areas of the historic center of the city of Lagos, we present this magnificent traditional house with a huge terrace where you can enjoy a stunning sea view of the Meia Praia bay. In recent years, the house has undergone a thorough and careful renovation, preserving its traditiona

Location

📍 37.1028°N, 8.6731°W

· Lagos, Algarve, Portugal

View on Villas Key →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua José Paleti, Centro, Lagos

Inventory
4 Beds
Bathrooms
4 Baths
Built Area
183 m²
Land Plot
96 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 8.5% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score73
GradeB+
Brixfox Intelligence
73B+Strong
Score Breakdown
ROI & Yield80%
Capital Growth77%
Risk Profile74%
Market Demand73%

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
+14.0%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$192K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
8.5%
$5,354/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
7 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
11.8 yr
Rental only

Property details

Year built: 2018
Energy: C
Condition: good

Description

In one of the quietest and most noble areas of the historic center of the city of Lagos, we present this magnificent traditional house with a huge terrace where you can enjoy a stunning sea view of the Meia Praia bay. In recent years, the house has undergone a thorough and careful renovation, preserving its traditiona

Income Breakdown

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Nightly Rate (ADR)
$889/night
50% ($409)Brixfox estimate($889/night)200% ($1635)
Occupancy
39%
10%Brixfox estimate(39%)100%

Short-Term Rental

Yearly income
$64,247
Airbnb data$889/night · 39% occupancy
Rental income
$889/night · 39% occ.
$126,095
Running costs (20%)
Utilities, cleaning, maintenance
-$25,219
Income tax (10%)
Indonesian rental income tax
-$35,306
Property tax
Annual property tax
-$1,322
Net income
8.5% ROI
$64,247

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$755,435
IMT (transfer tax, investment schedule)$45,326
Imposto de Selo (stamp duty)$6,043
Notary & registration$1,359
Legal / due diligence$11,332
Total acquisition costs$64,060
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$10,940
($5,967–$15,913)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$38,641
All-in investment$869,076

Gross yield (asking)

16.7%

True gross yield (all-in)

14.5%

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 Lagos.

$5.8M$4.4M$2.9M$1.5M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $695K
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 11: rental income alone has repaid the full purchase price.
2x return
Year 8: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$846K
+22%
Rental Income
+$314K
Total Position
$1.2M
+67%
10.8%/yr
Year 10
Capital Value
$1.0M
+48%
Rental Income
+$678K
Total Position
$1.7M
+146%
9.4%/yr
Year 20
Capital Value
$1.5M
+119%
Rental Income
+$1.6M
Total Position
$3.1M
+348%
7.8%/yr
Year 30
Capital Value
$2.3M
+224%
Rental Income
+$2.8M
Total Position
$5.1M
+629%
6.8%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
8.5% annual return
Occupancy
Weak
39% average occupancy
Nightly Rate
Strong
$818 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Weak
96 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 8.5% — outperforms most villas in this market
Premium nightly rate of $818 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 39% — 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.
8.8%
$5,567/mo
40% occ.
11.8%
$7,459/mo
39% occ.
11.5%
$7,245/mo
current
49% occ.
14.5%
$9,138/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.