Detached house in Estrada M537 Nn, Praia da Luz, Luz
Detached house in Estrada M537 Nn, Praia da Luz, Luz — image 2Detached house in Estrada M537 Nn, Praia da Luz, Luz — image 3Detached house in Estrada M537 Nn, Praia da Luz, Luz — image 4Detached house in Estrada M537 Nn, Praia da Luz, Luz — image 5
Grade B+villa

Detached house in Estrada M537 Nn, Praia da Luz, Luz

Lagos · Western Algarve ·

€899,000

Asking Price (EUR)

6.7%

True Net Yield (Owner, all-in)

4.6%

True Net Yield (Managed, all-in)

10.3%

True Gross Yield

58%

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: €110,409/yr
Average Daily Rate: €526
Payback Period: 10.2 years
5-yr Capital Value: €1.2M
10-yr Capital Value: €1.4M
Brixfox Score: 74.8 / 100
Comparable Properties: 8
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.

€1.1M

+19.5% over asking

Asking price€899,000
IMT — Property transfer tax (investment schedule)€53,940
IS — Stamp duty (0.8%)€7,192
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€13,485
Total acquisition costs€75,867
Renovation (est. €200/m² × 311 m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		€62,200
(€31,100–€93,300)
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)€1.1M

Gross yield (asking price)

12.3%

True gross yield (all-in)

10.3%

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: 4
Bathrooms: 4
Building: 311 m²
Year Built: 2011

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
22.89
Visual Appeal
10
Ownership Security
13
Location
10.2
Land & Space
6
Rental Demand
5.75
Payback Speed
4
STR Suitability
3

Description

Dream Villa with Pool, Garden, and Sea View 15 Minutes Walk from Praia da Luz Excellent detached villa, where comfort, privacy, and quality of life unite in a privileged setting – just a 15-minute walk from Praia da Luz. Space designed to make the most of the Algarve climate: an impressive private pool with 64 m³ (12 m

Location

📍 37.0949°N, 8.7229°W

· Lagos, Algarve, Portugal

View on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Estrada M537 Nn, Praia da Luz, Luz

Inventory
4 Beds
Bathrooms
4 Baths
Built Area
311 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 8.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score75
GradeB+
Brixfox Intelligence
75B+Strong
Score Breakdown
ROI & Yield83%
Capital Growth79%
Risk Profile76%
Market Demand75%

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
+13.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$248K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
8.3%
$6,768/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
12.0 yr
Rental only

Property details

Year built: 2011

Description

Dream Villa with Pool, Garden, and Sea View 15 Minutes Walk from Praia da Luz Excellent detached villa, where comfort, privacy, and quality of life unite in a privileged setting – just a 15-minute walk from Praia da Luz. Space designed to make the most of the Algarve climate: an impressive private pool with 64 m³ (12 m

Income Breakdown

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Nightly Rate (ADR)
$760/night
50% ($349)Brixfox estimate($760/night)200% ($1398)
Occupancy
58%
10%Brixfox estimate(58%)100%

Short-Term Rental

Yearly income
$81,211
Airbnb data$760/night · 58% occupancy
Rental income
$760/night · 58% occ.
$159,464
Running costs (20%)
Utilities, cleaning, maintenance
-$31,893
Income tax (10%)
Indonesian rental income tax
-$44,650
Property tax
Annual property tax
-$1,710
Net income
8.3% ROI
$81,211

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$977,174
IMT (transfer tax, investment schedule)$58,630
Imposto de Selo (stamp duty)$7,817
Notary & registration$1,359
Legal / due diligence$14,658
Total acquisition costs$82,464
Renovation (~$217/m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		$67,609
($33,804–$101,413)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$38,641
All-in investment$1,165,888

Gross yield (asking)

16.3%

True gross yield (all-in)

13.7%

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.

$7.4M$5.6M$3.7M$1.9M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $899K
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
$1.1M
+22%
Rental Income
+$397K
Total Position
$1.5M
+66%
10.6%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$857K
Total Position
$2.2M
+143%
9.3%/yr
Year 20
Capital Value
$2.0M
+119%
Rental Income
+$2.0M
Total Position
$4.0M
+342%
7.7%/yr
Year 30
Capital Value
$2.9M
+224%
Rental Income
+$3.6M
Total Position
$6.5M
+620%
6.8%/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
Strong
8.3% annual return
Occupancy
Average
58% average occupancy
Nightly Rate
Strong
$699 per night
Visual Appeal
Average
Not yet analyzed
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 8.3% — outperforms most villas in this market
Premium nightly rate of $699 — 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 58% — 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

38% occ.
7.3%
$5,925/mo
48% occ.
9.3%
$7,542/mo
58% occ.
11.2%
$9,160/mo
current
68% occ.
13.2%
$10,777/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.