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Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz
Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz — image 2Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz — image 3Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz — image 4Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz — image 5
Grade Bvillaluxury

Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz

Lagos · Western Algarve ·

€11.5M

Asking Price (EUR)

1.1%

True Net Yield (Owner, all-in)

0.7%

True Net Yield (Managed, all-in)

1.9%

True Gross Yield

59%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.9 months ago and is currently at 24% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.77, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €237,018/yr
Average Daily Rate: €1092
+26.0% vs area baselineImage quality 8/10 (+3%), Portuguese-traditional style (+5%), Has pool (0%), Has view (+10%), Luxury finish (+8%)
Payback Period: 151.2 years
5-yr Capital Value: €13.3M
10-yr Capital Value: €15.5M
Brixfox Score: 62.6 / 100
Comparable Properties: 6
Data Confidence: 67%
Search Radius: 4 km

True Investment Cost

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

€12.7M

+10.4% over asking

Asking price€11.5M
IMT — Property transfer tax (investment schedule)€862,500
IS — Stamp duty (0.8%)€92,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€172,500
Total acquisition costs€1.1M
Renovation€0 — move-in ready
Furnishing & STR launch (5bd × €8000 base, luxury tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€71,000
All-in investment (incl. renovation & furnishing)€12.7M

Gross yield (asking price)

2.1%

True gross yield (all-in)

1.9%

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: 5
Bathrooms: 7
Building: 617 m²
Land: 2010 m²
Style: portuguese-traditional
Condition: excellent
Year Built: 2001
Energy Certificate: B
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

moorish-inspired architectureornate tiled interiorslarge private gardensea views

Score Breakdown

ROI
2.64
Visual Appeal
14.8
Ownership Security
13
Location
10.2
Land & Space
12
Rental Demand
5.95
Payback Speed
0
STR Suitability
4

Description

Arab Palace by the Sea – A Work of Art with Unique Tourist Potential | Praia da Luz Just 50 metres from the Atlantic Ocean and a short distance from the centre of Praia da Luz, this extraordinary Arab-inspired palace is a true architectural masterpiece, unique in Portugal, with all the conditions to be transformed int

Location

📍 37.0870°N, 8.7290°W

· Lagos, Algarve, Portugal

View this property on KW ALIVE →Listed via Idealista.pt
5-bedroom freehold villa in Lagos — photo 1 of 5
KW ALIVE
5-bedroom freehold villa in Lagos — photo 2 of 5
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5-bedroom freehold villa in Lagos — photo 5 of 5

Palace in Urbanização Ponta da Gaivota Nn, Praia da Luz, Luz

Lagos · Western Algarve · Ref BF-1057 Source verified · KW ALIVE · listed 2 Jun 2026
Asking price · Freehold
$12,500,000
View original listing
Ownership
Freehold
Bedrooms
5
Bathrooms
7
Built area
617 m²
Land
2010 m²
True net yield
0.7%
≈ $15,517/mo net after costs & tax
5-yr total return (net + appreciation)
6.8% / yr avg
Payback in ~151 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: 2001
Energy: B
Condition: excellent

Description

Arab Palace by the Sea – A Work of Art with Unique Tourist Potential | Praia da Luz Just 50 metres from the Atlantic Ocean and a short distance from the centre of Praia da Luz, this extraordinary Arab-inspired palace is a true architectural masterpiece, unique in Portugal, with all the conditions to be transformed int

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)
$1,535/night
50% ($706)Brixfox estimate($1,535/night)200% ($2824)
Occupancy
59%
10%Brixfox estimate(59%)100%

Short-Term Rental

Indicative
Yearly income
$160,443
Likely range $96,265 – $224,620
Airbnb data$1,535/night · 59% occupancy
Rental income
$1,535/night · 59% occ.
$308,543
Running costs (20%)
Utilities, cleaning, maintenance
-$61,709
Income tax (10%)
Indonesian rental income tax
-$86,392
Property tax
Annual property tax
-$0
Net income
1.3% ROI
$160,443

Investment Returns

After-tax net yield · all-in cost basis

Area estimate

Net Yield · Area Estimate

0.7%

Based on area comps — this property's exact location is unconfirmed

Scenario
Pre-tax
After-tax
Owner-managed
1.4%
1.2%
Fully-managed
0.9%
0.7%
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

2.3%

Annual Revenue

$308,543

Income Tax / yr

$26,998

Payback

—

True All-In Cost
Asking price$12,500,000
IMT — transfer tax (non-resident 7.5%)$937,500
Stamp duty (0.8%)$100,000
Notary + registry$2,174
Legal$13,370
Furnishing + STR launch$27,174
All-in cost$13,580,217

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Lagos.

$51.0M$38.2M$25.5M$12.7M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 302x ReturnToday: $11.5M
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.
2x return
Year 15: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$14.0M
+22%
Rental Income
+$784K
Total Position
$14.8M
+28%
5.1%/yr
Year 10
Capital Value
$17.0M
+48%
Rental Income
+$1.7M
Total Position
$18.7M
+63%
5.0%/yr
Year 20
Capital Value
$25.2M
+119%
Rental Income
+$4.0M
Total Position
$29.2M
+154%
4.8%/yr
Year 30
Capital Value
$37.3M
+224%
Rental Income
+$7.0M
Total Position
$44.3M
+285%
4.6%/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

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

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Weak
1.3% annual return
Occupancy
Average
59% average occupancy
Nightly Rate
Strong
$1412 per night
Visual Appeal
Strong
9/10 instagrammability
Size & Space
Strong
2010 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $1412 — positioned in the top tier
Stunning visuals with 9/10 instagrammability — commands premium nightly rates
Generous 2010 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 1.3% is below 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

39% occ.
1.2%
$12,902/mo
49% occ.
1.6%
$16,170/mo
59% occ.
1.9%
$19,439/mo
current
69% occ.
2.2%
$22,707/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.