Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz
Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz — image 2Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz — image 3Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz — image 4Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz — image 5
Grade Bvilla

Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz

Lagos · Western Algarve ·

€995,000

Asking Price (EUR)

2.2%

True Net Yield (Owner, all-in)

1.5%

True Net Yield (Managed, all-in)

3.4%

True Gross Yield

49%

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: €39,075/yr
Average Daily Rate: €219
Payback Period: 31.8 years
5-yr Capital Value: €1.3M
10-yr Capital Value: €1.6M
Brixfox Score: 58.5 / 100
Comparable Properties: 49
Data Confidence: 95%
Search Radius: 2 km

True Investment Cost

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

€1.2M

+15.7% over asking

Asking price€995,000
IMT — Property transfer tax (investment schedule)€59,700
IS — Stamp duty (0.8%)€7,960
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€14,925
Total acquisition costs€83,835
Renovation (est. €200/m² × 227 m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		€45,400
(€22,700–€68,100)
Furnishing & STR launch (2bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€26,850
All-in investment (incl. renovation & furnishing)€1.2M

Gross yield (asking price)

3.9%

True gross yield (all-in)

3.4%

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: 1
Building: 227 m²
Year Built: 2027

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
11.46
Visual Appeal
10
Ownership Security
13
Location
10.2
Land & Space
6
Rental Demand
4.89
Payback Speed
0
STR Suitability
3

Description

Discover this magnificent luxury villa currently under construction, located in the quiet and central neighborhood of Luz, Lagos. Priced at €995,000, this 226-square-meter property offers the perfect blend of comfort and elegance, ideal for those seeking a new home or a quality investment in the stunning Algarve region

Location

📍 37.0895°N, 8.7320°W

· Lagos, Algarve, Portugal

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

Detached house in Rua do Ramalhete, 1, Praia da Luz, Luz

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

Grade B investment — short-term rental yields 2.5% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score59
GradeB
Brixfox Intelligence
59BStrong
Score Breakdown
ROI & Yield65%
Capital Growth62%
Risk Profile61%
Market Demand59%

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
+8.1%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$275K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
2.5%
$2,288/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
11 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
39.4 yr
Rental only

Property details

Year built: 2027

Description

Discover this magnificent luxury villa currently under construction, located in the quiet and central neighborhood of Luz, Lagos. Priced at €995,000, this 226-square-meter property offers the perfect blend of comfort and elegance, ideal for those seeking a new home or a quality investment in the stunning Algarve region

Income Breakdown

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Nightly Rate (ADR)
$316/night
50% ($145)Brixfox estimate($316/night)200% ($582)
Occupancy
49%
10%Brixfox estimate(49%)100%

Short-Term Rental

Yearly income
$27,454
Airbnb data$316/night · 49% occupancy
Rental income
$316/night · 49% occ.
$56,436
Running costs (20%)
Utilities, cleaning, maintenance
-$11,287
Income tax (10%)
Indonesian rental income tax
-$15,802
Property tax
Annual property tax
-$1,893
Net income
2.5% ROI
$27,454

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$1,081,522
IMT (transfer tax, investment schedule)$64,891
Imposto de Selo (stamp duty)$8,652
Notary & registration$1,359
Legal / due diligence$16,223
Total acquisition costs$91,125
Renovation (~$217/m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		$49,348
($24,674–$74,022)
Furnishing & STR launch
2bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$27,011
All-in investment$1,249,005

Gross yield (asking)

5.2%

True gross yield (all-in)

4.5%

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.

$5.1M$3.8M$2.5M$1.3M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $995K
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 27: rental income alone has repaid the full purchase price.
2x return
Year 13: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.2M
+22%
Rental Income
+$134K
Total Position
$1.3M
+35%
6.2%/yr
Year 10
Capital Value
$1.5M
+48%
Rental Income
+$290K
Total Position
$1.8M
+77%
5.9%/yr
Year 20
Capital Value
$2.2M
+119%
Rental Income
+$679K
Total Position
$2.9M
+187%
5.4%/yr
Year 30
Capital Value
$3.2M
+224%
Rental Income
+$1.2M
Total Position
$4.4M
+345%
5.1%/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
Weak
2.5% annual return
Occupancy
Average
49% average occupancy
Nightly Rate
Strong
$291 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 $291 — 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 2.5% is below 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

30% occ.
2.1%
$1,862/mo
40% occ.
2.8%
$2,536/mo
49% occ.
3.5%
$3,134/mo
current
59% occ.
4.2%
$3,808/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.