Detached house in Rua das Mercês, Montinhos da Luz, Luz
Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 2Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 3Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 4Detached house in Rua das Mercês, Montinhos da Luz, Luz — image 5
Grade Bvilla

Detached house in Rua das Mercês, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€2.9M

Asking Price (EUR)

3.3%

True Net Yield (Owner, all-in)

2.2%

True Net Yield (Managed, all-in)

5.0%

True Gross Yield

67%

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: €164,178/yr
Average Daily Rate: €675
Payback Period: 22.1 years
5-yr Capital Value: €3.8M
10-yr Capital Value: €4.6M
Brixfox Score: 62.8 / 100
Comparable Properties: 10
Data Confidence: 77%
Search Radius: 2 km

True Investment Cost

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

€3.3M

+13.2% over asking

Asking price€2.9M
IMT — Property transfer tax (investment schedule)€217,500
IS — Stamp duty (0.8%)€23,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€43,500
Total acquisition costs€285,450
Renovation (est. €200/m² × 300 m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		€60,000
(€30,000–€90,000)
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)€3.3M

Gross yield (asking price)

5.7%

True gross yield (all-in)

5.0%

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: 4
Bathrooms: 5
Building: 300 m²
Year Built: 2025

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
14.74
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
6
Rental Demand
6.66
Payback Speed
1
STR Suitability
3

Description

This 4 bedroom modern villa offers a thoughtfully layout and is designed across three levels, with attention to both functionality and aesthetics. The modern architecture and high-quality specifications ensure a luxurious living experience. The living accommodation is spread through the ground and first floor with a g

Location

📍 37.0872°N, 8.7439°W

· Lagos, Algarve, Portugal

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

Detached house in Rua das Mercês, Montinhos da Luz, Luz

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

Grade B investment — short-term rental yields 3.7% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score63
GradeB
Brixfox Intelligence
63BStrong
Score Breakdown
ROI & Yield69%
Capital Growth66%
Risk Profile65%
Market Demand63%

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
+9.3%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$801K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.7%
$9,816/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
10 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
26.8 yr
Rental only

Property details

Year built: 2025

Description

This 4 bedroom modern villa offers a thoughtfully layout and is designed across three levels, with attention to both functionality and aesthetics. The modern architecture and high-quality specifications ensure a luxurious living experience. The living accommodation is spread through the ground and first floor with a g

Income Breakdown

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Customize your projections
Nightly Rate (ADR)
$975/night
50% ($449)Brixfox estimate($975/night)200% ($1795)
Occupancy
67%
10%Brixfox estimate(67%)100%

Short-Term Rental

Yearly income
$117,788
Airbnb data$975/night · 67% occupancy
Rental income
$975/night · 67% occ.
$237,123
Running costs (20%)
Utilities, cleaning, maintenance
-$47,425
Income tax (10%)
Indonesian rental income tax
-$66,394
Property tax
Annual property tax
-$5,516
Net income
3.7% ROI
$117,788

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$3,152,174
IMT (transfer tax, investment schedule)$236,413
Imposto de Selo (stamp duty)$25,217
Notary & registration$1,359
Legal / due diligence$47,283
Total acquisition costs$310,272
Renovation (~$217/m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		$65,217
($32,609–$97,826)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$38,641
All-in investment$3,566,304

Gross yield (asking)

7.5%

True gross yield (all-in)

6.6%

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.

$16.7M$12.6M$8.4M$4.2M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $2.9M
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 20: rental income alone has repaid the full purchase price.
2x return
Year 11: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$3.5M
+22%
Rental Income
+$575K
Total Position
$4.1M
+42%
7.2%/yr
Year 10
Capital Value
$4.3M
+48%
Rental Income
+$1.2M
Total Position
$5.5M
+91%
6.7%/yr
Year 20
Capital Value
$6.4M
+119%
Rental Income
+$2.9M
Total Position
$9.3M
+220%
6.0%/yr
Year 30
Capital Value
$9.4M
+224%
Rental Income
+$5.2M
Total Position
$14.6M
+402%
5.5%/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
3.7% annual return
Occupancy
Good
67% average occupancy
Nightly Rate
Strong
$897 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

Premium nightly rate of $897 — 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 3.7% 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

47% occ.
3.5%
$9,219/mo
57% occ.
4.3%
$11,296/mo
67% occ.
5.1%
$13,372/mo
current
77% occ.
5.9%
$15,449/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.