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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 ·

€1.8M

Asking Price (EUR)

5.0%

True Net Yield (Owner, all-in)

3.5%

True Net Yield (Managed, all-in)

6.3%

True Gross Yield

60%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 3.1 months ago and is currently at 26% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.78, occupancy cap 68%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €129,658/yr
Average Daily Rate: €591
Payback Period: 26.9 years
5-yr Capital Value: €2.1M
10-yr Capital Value: €2.4M
Brixfox Score: 63.4 / 100
Comparable Properties: 14
Data Confidence: 86%
Search Radius: 2 km

True Investment Cost

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

€2.1M

+14.8% over asking

Asking price€1.8M
IMT — Property transfer tax (investment schedule)€134,625
IS — Stamp duty (0.8%)€14,360
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€26,925
Total acquisition costs€177,160
Renovation (est. €200/m² × 255 m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		€51,000
(€25,500–€76,500)
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)€2.1M

Gross yield (asking price)

7.2%

True gross yield (all-in)

6.3%

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: 255 m²
Year Built: 2026

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
13.99
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
6
Rental Demand
6.01
Payback Speed
2
STR Suitability
4

Description

Villa – Sea Views & Heated Pool Fastighetsbyrån Lagos proudly presents a stunning architect-designed villa with sea views, southwest orientation, and energy-efficient design in Praia da Luz. Elevated in a privileged position with panoramic views over both the Atlantic Ocean and the rolling countryside. Located just 6

Location

📍 37.0871°N, 8.7472°W

· Lagos, Algarve, Portugal

Listed by Fastighetsbyrån Lagos, Algarve via Idealista.pt
4-bedroom freehold villa in Lagos — photo 1 of 5
Idealista.pt
4-bedroom freehold villa in Lagos — photo 2 of 5
4-bedroom freehold villa in Lagos — photo 3 of 5
4-bedroom freehold villa in Lagos — photo 4 of 5
4-bedroom freehold villa in Lagos — photo 5 of 5

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

Lagos · Western Algarve · Ref BF-90924 Source verified · Idealista.pt · listed 1 Jul 2026
Asking price · Freehold
$1,951,087
Ownership
Freehold
Bedrooms
4
Bathrooms
4
Built area
255 m²
True net yield
3.7%
≈ $11,094/mo net after costs & tax
5-yr total return (net + appreciation)
10.0% / yr avg
Payback in ~27 yrs from rent
Brixfox Score 63 · B

What nearby Airbnbs actually earn

Brixfox tracks the live availability calendars of Airbnb listings around this property. The rates and occupancy below are observed from real bookings — this is the data behind every yield figure on this page.

Location

Lagos

Western Algarve, Approximate area

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Airbnb Comp Analysis

Finding Airbnb comps...

Property details

Year built: 2026

Description

Villa – Sea Views & Heated Pool Fastighetsbyrån Lagos proudly presents a stunning architect-designed villa with sea views, southwest orientation, and energy-efficient design in Praia da Luz. Elevated in a privileged position with panoramic views over both the Atlantic Ocean and the rolling countryside. Located just 6

Income Breakdown

Figures are modelled estimates derived from comparable short-term-rental data — not guaranteed returns or financial advice. Do your own due diligence before investing.

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$827/night
50% ($413)Brixfox estimate($827/night)200% ($1,654)
Occupancy
60%
10%Brixfox estimate(60%)100%

Short-Term Rental

Indicative
Yearly income
$87,314
Likely range $52,388 – $122,240
Airbnb data$827/night · 60% occupancy
Rental income
$827/night · 60% occ.
$167,912
Running costs (20%)
Utilities, cleaning, maintenance
-$33,582
Income tax (28%)
Non-resident IRS (Cat. F)
-$47,015
Net income
4.5% ROI
$87,314

Investment Returns

After-tax net yield · all-in cost basis

Approx. location

Net Yield · Fully-Managed · After Tax

3.7%

on all-in cost of $2,155,745

Scenario
Pre-tax
After-tax
Owner-managed
6.2%
5.5%
Fully-managed
4.4%
3.7%
After-tax nets ~28% non-resident IRS on AL income (simplified regime). Yields are on the all-in acquisition cost, not the asking price.

Gross Yield

7.8%

Annual Revenue

$167,912

Income Tax / yr

$14,692

Payback

27 yrs

True All-In Cost
Asking price$1,951,087
IMT — transfer tax (non-resident 7.5%)$146,332
Stamp duty (0.8%)$15,609
Notary + registry$2,174
Legal$13,370
Furnishing + STR launch$27,174
All-in cost$2,155,745

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Lagos.

$11.1M$8.3M$5.5M$2.8M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.8M
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 18: 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
$2.2M
+22%
Rental Income
+$426K
Total Position
$2.6M
+45%
7.8%/yr
Year 10
Capital Value
$2.7M
+48%
Rental Income
+$921K
Total Position
$3.6M
+99%
7.1%/yr
Year 20
Capital Value
$3.9M
+119%
Rental Income
+$2.2M
Total Position
$6.1M
+239%
6.3%/yr
Year 30
Capital Value
$5.8M
+224%
Rental Income
+$3.8M
Total Position
$9.6M
+437%
5.8%/yr
Turnkey Management

Your property, professionally managed

Buying from abroad? You won't lift a finger. A vetted local management partner is already connected to this listing — ready to run it as a short-stay rental from day one, so the Managed projections above are something you can actually rely on.

Vetted by Brixfox 8+ yrs operating 110+ properties managed ~2h guest response

Atlantic Stays Management

Vetted

Alojamento Local management, Lisbon to the Algarve

22%
Management fee
of rental revenue — already in your Managed figures

End-to-end AL management for international owners. We handle the licence, the platforms and the guests so your second home pays for itself.

What the fee covers

  • Listing setup & optimisation (Airbnb, Booking.com, VRBO)
  • Dynamic pricing & revenue management
  • 24/7 multilingual guest communication
  • Guided check-in / check-out & key handling
  • Professional cleaning, laundry & restocking
  • Maintenance & repairs coordination
  • Monthly owner statements & payouts
  • Guest screening & damage protection
  • Alojamento Local (AL) licence handling & renewals
  • SEF/AIMA guest registration & tourist-tax filing
Visit Atlantic Stays Management

Ask Brixfox AI

Conversational analysis — questions about this listing, answered from real data.

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
4.5% annual return
Occupancy
Good
60% average occupancy
Nightly Rate
Strong
$761 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 $761 — 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 4.5% 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

40% occ.
3.2%
$5,242/mo
50% occ.
4.0%
$6,550/mo
60% occ.
4.8%
$7,858/mo
current
70% occ.
5.6%
$9,166/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. Market factors in Portugal may impact actual yields.