Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz
Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz — image 2Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz — image 3Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz — image 4Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz — image 5
Grade B+villaluxury

Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz

Lagos · Western Algarve ·

€1.5M

Asking Price (EUR)

2.9%

True Net Yield (Owner, all-in)

2.0%

True Net Yield (Managed, all-in)

4.5%

True Gross Yield

50%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.9 months ago and is currently at 16% 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: €76,094/yr
Average Daily Rate: €415
+26.0% vs area baselineImage quality 8/10 (+3%), Portuguese-traditional style (+5%), Has pool (0%), Has view (+10%), Luxury finish (+8%)
Payback Period: 24.5 years
5-yr Capital Value: €2.0M
10-yr Capital Value: €2.4M
Brixfox Score: 72.5 / 100
Comparable Properties: 29
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.

€1.7M

+13.4% over asking

Asking price€1.5M
IMT — Property transfer tax (investment schedule)€112,500
IS — Stamp duty (0.8%)€12,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€22,500
Total acquisition costs€148,250
Renovation€0 — move-in ready
Furnishing & STR launch (3bd × €8000 base, luxury tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€53,300
All-in investment (incl. renovation & furnishing)€1.7M

Gross yield (asking price)

5.1%

True gross yield (all-in)

4.5%

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
Bathrooms: 3
Building: 189 m²
Land: 848 m²
Style: portuguese-traditional
Condition: excellent
Year Built: 2008
Energy Certificate: A+
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

multiple large terracesinfinity pool with sea viewtraditional Portuguese roof tilesbalustrade railings

Score Breakdown

ROI
14.07
Visual Appeal
14.2
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
5.02
Payback Speed
1
STR Suitability
3

Description

Diese schöne High-End-Villa in Montinhos da Luz bietet hervorragende Qualitäten in einer ruhigen Wohngegend mit tollem Meerblick. Die klassische Familienvilla mit einer Wohnfläche von 189 m² befindet sich auf einem 848 m² großen Grundstück, nur wenige Gehminuten vom Dorfzentrum von Luz und seinem berühmten Strand entfe

Location

📍 37.0879°N, 8.7393°W

· Lagos, Algarve, Portugal

View on LiveAlgarve Realty →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua dos Hibiscos, 1, Praia da Luz, Luz

Inventory
3 Beds
Bathrooms
3 Baths
Built Area
189 m²
Land Plot
848 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 3.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score73
GradeB+
Brixfox Intelligence
73B+Strong
Score Breakdown
ROI & Yield80%
Capital Growth77%
Risk Profile74%
Market Demand73%

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
+8.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$414K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.4%
$4,559/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
29.8 yr
Rental only

Property details

Year built: 2008
Energy: A+
Condition: excellent

Description

Diese schöne High-End-Villa in Montinhos da Luz bietet hervorragende Qualitäten in einer ruhigen Wohngegend mit tollem Meerblick. Die klassische Familienvilla mit einer Wohnfläche von 189 m² befindet sich auf einem 848 m² großen Grundstück, nur wenige Gehminuten vom Dorfzentrum von Luz und seinem berühmten Strand entfe

Income Breakdown

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Nightly Rate (ADR)
$604/night
50% ($278)Brixfox estimate($604/night)200% ($1111)
Occupancy
50%
10%Brixfox estimate(50%)100%

Short-Term Rental

Yearly income
$54,712
Airbnb data$604/night · 50% occupancy
Rental income
$604/night · 50% occ.
$110,703
Running costs (20%)
Utilities, cleaning, maintenance
-$22,141
Income tax (10%)
Indonesian rental income tax
-$30,997
Property tax
Annual property tax
-$2,853
Net income
3.4% ROI
$54,712

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$1,630,435
IMT (transfer tax, investment schedule)$122,283
Imposto de Selo (stamp duty)$13,043
Notary & registration$1,359
Legal / due diligence$24,457
Total acquisition costs$161,141
RenovationMove-in ready
Furnishing & STR launch
3bd × $8,696 base + appliances, electronics, outdoor, licence, photography, linens.		$55,761
All-in investment$1,847,337

Gross yield (asking)

6.8%

True gross yield (all-in)

6.0%

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.

$8.3M$6.3M$4.2M$2.1M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.5M
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 22: rental income alone has repaid the full purchase price.
2x return
Year 12: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.8M
+22%
Rental Income
+$267K
Total Position
$2.1M
+39%
6.9%/yr
Year 10
Capital Value
$2.2M
+48%
Rental Income
+$577K
Total Position
$2.8M
+86%
6.4%/yr
Year 20
Capital Value
$3.3M
+119%
Rental Income
+$1.4M
Total Position
$4.6M
+209%
5.8%/yr
Year 30
Capital Value
$4.9M
+224%
Rental Income
+$2.4M
Total Position
$7.3M
+384%
5.4%/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
3.4% annual return
Occupancy
Average
50% average occupancy
Nightly Rate
Strong
$556 per night
Visual Appeal
Strong
8/10 instagrammability
Size & Space
Strong
848 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $556 — positioned in the top tier
Stunning visuals with 8/10 instagrammability — commands premium nightly rates
Generous 848 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 3.4% 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

30% occ.
2.7%
$3,647/mo
40% occ.
3.6%
$4,934/mo
50% occ.
4.6%
$6,220/mo
current
60% occ.
5.5%
$7,506/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.