House in Praia da Luz, Luz
House in Praia da Luz, Luz — image 2House in Praia da Luz, Luz — image 3House in Praia da Luz, Luz — image 4House in Praia da Luz, Luz — image 5
Grade B+villamid-range

House in Praia da Luz, Luz

Lagos · Western Algarve ·

€725,000

Asking Price (EUR)

3.2%

True Net Yield (Owner, all-in)

2.2%

True Net Yield (Managed, all-in)

5.0%

True Gross Yield

51%

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: €41,109/yr
Average Daily Rate: €220
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 22.0 years
5-yr Capital Value: €952,639
10-yr Capital Value: €1.2M
Brixfox Score: 70.9 / 100
Comparable Properties: 54
Data Confidence: 97%
Search Radius: 2 km

True Investment Cost

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

€823,475

+13.6% over asking

Asking price€725,000
IMT — Property transfer tax (investment schedule)€43,500
IS — Stamp duty (0.8%)€5,800
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€10,875
Total acquisition costs€61,425
Renovation (est. €55/m² × 140 m²)
Light touch-ups — paint, fixtures, deep clean.		€7,700
(€4,200–€11,200)
Furnishing & STR launch (2bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€29,350
All-in investment (incl. renovation & furnishing)€823,475

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: 2
Bathrooms: 2
Building: 140 m²
Land: 800 m²
Style: portuguese-traditional
Condition: good
Year Built: 1988
Energy Certificate: D
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional white architecture with terracotta roofslush tropical landscaping with palm trees and bougainvillearesort-style swimming pool area with straw umbrellasprivate balconies overlooking the pool and gardens

Score Breakdown

ROI
14.78
Visual Appeal
11.8
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
5.12
Payback Speed
1
STR Suitability
3

Description

Nestled in the picturesque coastal town of Praia da Luz, this charming villa offers the perfect blend of convenience and tranquility. Spread across 140 square meters, this 2-bedroom, 2-bathroom property boasts a spacious terrace where you can enjoy the stunning sea views and soak up the sun. Built in 1988, this villa

Location

📍 37.0913°N, 8.7322°W

· Lagos, Algarve, Portugal

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

House in Praia da Luz, Luz

Inventory
2 Beds
Bathrooms
2 Baths
Built Area
140 m²
Land Plot
800 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 3.8% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score71
GradeB+
Brixfox Intelligence
71B+Strong
Score Breakdown
ROI & Yield78%
Capital Growth75%
Risk Profile72%
Market Demand71%

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%
+$200K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.8%
$2,466/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
26.6 yr
Rental only

Property details

Year built: 1988
Energy: D
Condition: good

Description

Nestled in the picturesque coastal town of Praia da Luz, this charming villa offers the perfect blend of convenience and tranquility. Spread across 140 square meters, this 2-bedroom, 2-bathroom property boasts a spacious terrace where you can enjoy the stunning sea views and soak up the sun. Built in 1988, this villa

Income Breakdown

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Nightly Rate (ADR)
$319/night
50% ($147)Brixfox estimate($319/night)200% ($586)
Occupancy
51%
10%Brixfox estimate(51%)100%

Short-Term Rental

Yearly income
$29,596
Airbnb data$319/night · 51% occupancy
Rental income
$319/night · 51% occ.
$59,567
Running costs (20%)
Utilities, cleaning, maintenance
-$11,913
Income tax (10%)
Indonesian rental income tax
-$16,679
Property tax
Annual property tax
-$1,379
Net income
3.8% ROI
$29,596

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$788,043
IMT (transfer tax, investment schedule)$47,283
Imposto de Selo (stamp duty)$6,304
Notary & registration$1,359
Legal / due diligence$11,821
Total acquisition costs$66,766
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$8,370
($4,565–$12,174)
Furnishing & STR launch
2bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$29,728
All-in investment$892,908

Gross yield (asking)

7.6%

True gross yield (all-in)

6.7%

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.

$4.2M$3.1M$2.1M$1.0M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $725K
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
$882K
+22%
Rental Income
+$145K
Total Position
$1.0M
+42%
7.2%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$312K
Total Position
$1.4M
+91%
6.7%/yr
Year 20
Capital Value
$1.6M
+119%
Rental Income
+$732K
Total Position
$2.3M
+220%
6.0%/yr
Year 30
Capital Value
$2.4M
+224%
Rental Income
+$1.3M
Total Position
$3.6M
+403%
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
3.8% annual return
Occupancy
Average
51% average occupancy
Nightly Rate
Strong
$293 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
800 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $293 — positioned in the top tier
Generous 800 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 3.8% 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

31% occ.
3.1%
$2,003/mo
41% occ.
4.1%
$2,682/mo
51% occ.
5.1%
$3,360/mo
current
61% occ.
6.1%
$4,038/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.