T3 flat in Praia da Luz, Luz
T3 flat in Praia da Luz, Luz — image 2T3 flat in Praia da Luz, Luz — image 3T3 flat in Praia da Luz, Luz — image 4T3 flat in Praia da Luz, Luz — image 5
Grade B+apartmentmid-range

T3 flat in Praia da Luz, Luz

Lagos · Western Algarve ·

€525,000

Asking Price (EUR)

4.8%

True Net Yield (Owner, all-in)

3.3%

True Net Yield (Managed, all-in)

7.3%

True Gross Yield

56%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 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: €44,569/yr
Average Daily Rate: €219
Payback Period: 14.7 years
5-yr Capital Value: €689,842
10-yr Capital Value: €839,299
Brixfox Score: 66.8 / 100
Comparable Properties: 39
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.

€608,390

+15.9% over asking

Asking price€525,000
IMT — Property transfer tax (investment schedule)€29,830
IS — Stamp duty (0.8%)€4,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€7,875
Total acquisition costs€43,155
Renovation (est. €55/m² × 137 m²)
Light touch-ups — paint, fixtures, deep clean.		€7,535
(€4,110–€10,960)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,700
All-in investment (incl. renovation & furnishing)€608,390

Gross yield (asking price)

8.5%

True gross yield (all-in)

7.3%

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: 3
Building: 137 m²
Style: portuguese-traditional
Condition: good
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

ocean viewprivate terracescommunal pool

Score Breakdown

ROI
18.24
Visual Appeal
9
Ownership Security
13
Location
10.2
Land & Space
4.74
Rental Demand
5.59
Payback Speed
3
STR Suitability
3

Description

Nestled within a tranquil residential enclave of just ten properties in Praia da Luz, this home offers breathtaking views of the ocean and the dramatic Rocha Negra cliffs. Praia da Luz is a picturesque coastal town, renowned for its golden sandy beach and relaxed atmosphere. Just a short drive from Lagos, it combines

Location

📍 37.0870°N, 8.7290°W

· Lagos, Algarve, Portugal

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

T3 flat in Praia da Luz, Luz

Inventory
3 Beds
Bathrooms
0 Baths
Built Area
137 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 5.7% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score67
GradeB+
Brixfox Intelligence
67B+Strong
Score Breakdown
ROI & Yield74%
Capital Growth70%
Risk Profile69%
Market Demand67%

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
+11.2%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$145K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.7%
$2,711/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
9 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
17.5 yr
Rental only

Property details

Condition: good

Description

Nestled within a tranquil residential enclave of just ten properties in Praia da Luz, this home offers breathtaking views of the ocean and the dramatic Rocha Negra cliffs. Praia da Luz is a picturesque coastal town, renowned for its golden sandy beach and relaxed atmosphere. Just a short drive from Lagos, it combines

Income Breakdown

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Nightly Rate (ADR)
$316/night
50% ($145)Brixfox estimate($316/night)200% ($582)
Occupancy
56%
10%Brixfox estimate(56%)100%

Short-Term Rental

Yearly income
$32,531
Airbnb data$316/night · 56% occupancy
Rental income
$316/night · 56% occ.
$64,479
Running costs (20%)
Utilities, cleaning, maintenance
-$12,896
Income tax (10%)
Indonesian rental income tax
-$18,054
Property tax
Annual property tax
-$999
Net income
5.7% ROI
$32,531

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$570,652
IMT (transfer tax, investment schedule)$32,424
Imposto de Selo (stamp duty)$4,565
Notary & registration$1,359
Legal / due diligence$8,560
Total acquisition costs$46,908
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$8,190
($4,467–$11,913)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$35,543
All-in investment$661,293

Gross yield (asking)

11.3%

True gross yield (all-in)

9.8%

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.

$3.6M$2.7M$1.8M$899K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $525K
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 15: rental income alone has repaid the full purchase price.
2x return
Year 9: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$639K
+22%
Rental Income
+$159K
Total Position
$798K
+52%
8.7%/yr
Year 10
Capital Value
$777K
+48%
Rental Income
+$343K
Total Position
$1.1M
+113%
7.9%/yr
Year 20
Capital Value
$1.2M
+119%
Rental Income
+$804K
Total Position
$2.0M
+272%
6.8%/yr
Year 30
Capital Value
$1.7M
+224%
Rental Income
+$1.4M
Total Position
$3.1M
+496%
6.1%/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
Good
5.7% annual return
Occupancy
Average
56% average occupancy
Nightly Rate
Strong
$291 per night
Visual Appeal
Good
7/10 instagrammability
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
Occupancy at 56% — 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

36% occ.
4.9%
$2,331/mo
46% occ.
6.3%
$3,005/mo
56% occ.
7.7%
$3,678/mo
current
66% occ.
9.2%
$4,351/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.