Detached house in Rua Direita, 3, Praia da Luz, Luz
Detached house in Rua Direita, 3, Praia da Luz, Luz — image 2Detached house in Rua Direita, 3, Praia da Luz, Luz — image 3Detached house in Rua Direita, 3, Praia da Luz, Luz — image 4Detached house in Rua Direita, 3, Praia da Luz, Luz — image 5
Grade B+villabudget

Detached house in Rua Direita, 3, Praia da Luz, Luz

Lagos · Western Algarve ·

€399,000

Asking Price (EUR)

4.2%

True Net Yield (Owner, all-in)

2.9%

True Net Yield (Managed, all-in)

6.5%

True Gross Yield

59%

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: €39,800/yr
Average Daily Rate: €184
Payback Period: 12.5 years
5-yr Capital Value: €524,280
10-yr Capital Value: €637,867
Brixfox Score: 69.5 / 100
Comparable Properties: 83
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.

€615,427

+54.2% over asking

Asking price€399,000
IMT — Property transfer tax (investment schedule)€19,750
IS — Stamp duty (0.8%)€3,192
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€5,985
Total acquisition costs€30,177
Renovation (est. €900/m² × 186 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€167,400
(€130,200–€204,600)
Furnishing & STR launch (2bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€18,850
All-in investment (incl. renovation & furnishing)€615,427

Gross yield (asking price)

10.0%

True gross yield (all-in)

6.5%

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: 2
Bathrooms: 2
Building: 186 m²
Land: 186 m²
Style: portuguese-traditional
Condition: needs-renovation
Year Built: 1950
Energy Certificate: E

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

cobblestone streettraditional blue and white facadestone paved courtyard

Score Breakdown

ROI
20.07
Visual Appeal
10
Ownership Security
13
Location
10.2
Land & Space
4.31
Rental Demand
5.94
Payback Speed
3
STR Suitability
3

Description

2 BEDROOM HOUSE IN LUZ, LAGOS – EXCELLENT INVESTMENT OPPORTUNITY Located on Rua Direita da Luz, the main street of the village, this house is available for sale for €399,000 and benefits from a privileged location, just 300 metres from the beach. With an area of 186 m², this property offers excellent potential for pr

Location

📍 37.0905°N, 8.7275°W

· Lagos, Algarve, Portugal

View on CENTURY 21 Universe →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua Direita, 3, Praia da Luz, Luz

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

Grade B+ investment — short-term rental yields 6.7% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score70
GradeB+
Brixfox Intelligence
70B+Strong
Score Breakdown
ROI & Yield77%
Capital Growth74%
Risk Profile72%
Market Demand70%

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
+12.3%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$110K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
6.7%
$2,432/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
8 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
14.9 yr
Rental only

Property details

Year built: 1950
Energy: E
Condition: needs-renovation

Description

2 BEDROOM HOUSE IN LUZ, LAGOS – EXCELLENT INVESTMENT OPPORTUNITY Located on Rua Direita da Luz, the main street of the village, this house is available for sale for €399,000 and benefits from a privileged location, just 300 metres from the beach. With an area of 186 m², this property offers excellent potential for pr

Income Breakdown

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Nightly Rate (ADR)
$266/night
50% ($122)Brixfox estimate($266/night)200% ($489)
Occupancy
59%
10%Brixfox estimate(59%)100%

Short-Term Rental

Yearly income
$29,185
Airbnb data$266/night · 59% occupancy
Rental income
$266/night · 59% occ.
$57,585
Running costs (20%)
Utilities, cleaning, maintenance
-$11,517
Income tax (10%)
Indonesian rental income tax
-$16,124
Property tax
Annual property tax
-$759
Net income
6.7% ROI
$29,185

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$433,696
IMT (transfer tax, investment schedule)$21,467
Imposto de Selo (stamp duty)$3,470
Notary & registration$1,359
Legal / due diligence$6,505
Total acquisition costs$32,801
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$181,957
($141,522–$222,391)
Furnishing & STR launch
2bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$18,315
All-in investment$666,768

Gross yield (asking)

13.3%

True gross yield (all-in)

8.6%

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.

$3.0M$2.2M$1.5M$739K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $399K
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 13: 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
$485K
+22%
Rental Income
+$143K
Total Position
$628K
+57%
9.5%/yr
Year 10
Capital Value
$591K
+48%
Rental Income
+$308K
Total Position
$898K
+125%
8.5%/yr
Year 20
Capital Value
$874K
+119%
Rental Income
+$721K
Total Position
$1.6M
+300%
7.2%/yr
Year 30
Capital Value
$1.3M
+224%
Rental Income
+$1.3M
Total Position
$2.6M
+544%
6.4%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
6.7% annual return
Occupancy
Average
59% average occupancy
Nightly Rate
Strong
$244 per night
Visual Appeal
Weak
3/10 instagrammability
Size & Space
Average
186 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $244 — 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 59% — 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

39% occ.
6.0%
$2,165/mo
49% occ.
7.6%
$2,731/mo
59% occ.
9.1%
$3,296/mo
current
69% occ.
10.7%
$3,861/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.