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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 B+villamid-range

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

Lagos · Western Algarve ·

€899,000

Asking Price (EUR)

5.7%

True Net Yield (Owner, all-in)

4.0%

True Net Yield (Managed, all-in)

7.3%

True Gross Yield

57%

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: €76,106/yr
Average Daily Rate: €364
+5.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%)
Payback Period: 24.2 years
5-yr Capital Value: €1.0M
10-yr Capital Value: €1.2M
Brixfox Score: 65.6 / 100
Comparable Properties: 18
Data Confidence: 91%
Search Radius: 2 km

True Investment Cost

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

€1.0M

+16.2% over asking

Asking price€899,000
IMT — Property transfer tax (investment schedule)€53,940
IS — Stamp duty (0.8%)€7,192
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€13,485
Total acquisition costs€75,867
Renovation (est. €55/m² × 630 m²)
Light touch-ups — paint, fixtures, deep clean.		€34,650
(€18,900–€50,400)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€34,700
All-in investment (incl. renovation & furnishing)€1.0M

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
Bathrooms: 2
Building: 630 m²
Land: 181 m²
Style: portuguese-traditional
Condition: good
Year Built: 1992
Energy Certificate: B-
Private Pool

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

balustrade balconiescobblestone pool surroundarched patio entrances

Score Breakdown

ROI
15.39
Visual Appeal
12.8
Ownership Security
13
Location
8.4
Land & Space
3.28
Rental Demand
5.73
Payback Speed
3
STR Suitability
4

Description

This fully renovated 3-bedroom detached villa is bright, spacious, and easy to live in, with a modern feel throughout. On the ground floor, a large entrance hall leads into an open-plan kitchen, dining and living area with plenty of natural light. A log burner adds a cosy touch in the cooler months, and air conditioni

Location

📍 37.0894°N, 8.7454°W

· Lagos, Algarve, Portugal

View this property on MOVE Algarve →Listed via Idealista.pt
3-bedroom freehold villa in Lagos — photo 1 of 5
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3-bedroom freehold villa in Lagos — photo 5 of 5

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

Lagos · Western Algarve · Ref BF-1432 Source verified · MOVE Algarve · listed 2 Jun 2026
Asking price · Freehold
$977,174
View original listing
Ownership
Freehold
Bedrooms
3
Bathrooms
2
Built area
630 m²
Land
181 m²
True net yield
4.1%
≈ $6,448/mo net after costs & tax
5-yr total return (net + appreciation)
10.8% / yr avg
Payback in ~24 yrs from rent
Brixfox Score 66 · 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

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Property details

Year built: 1992
Energy: B-
Condition: good

Description

This fully renovated 3-bedroom detached villa is bright, spacious, and easy to live in, with a modern feel throughout. On the ground floor, a large entrance hall leads into an open-plan kitchen, dining and living area with plenty of natural light. A log burner adds a cosy touch in the cooler months, and air conditioni

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)
$512/night
50% ($235)Brixfox estimate($512/night)200% ($941)
Occupancy
57%
10%Brixfox estimate(57%)100%

Short-Term Rental

Indicative
Yearly income
$51,505
Likely range $30,903 – $72,108
Airbnb data$512/night · 57% occupancy
Rental income
$512/night · 57% occ.
$99,049
Running costs (20%)
Utilities, cleaning, maintenance
-$19,810
Income tax (10%)
Indonesian rental income tax
-$27,734
Property tax
Annual property tax
-$0
Net income
5.3% ROI
$51,505

Investment Returns

After-tax net yield · all-in cost basis

Approx. location

Net Yield · Fully-Managed · After Tax

4.1%

on all-in cost of $1,099,647

Scenario
Pre-tax
After-tax
Owner-managed
7.0%
6.3%
Fully-managed
4.9%
4.1%
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

9.0%

Annual Revenue

$99,049

Income Tax / yr

$8,666

Payback

24 yrs

True All-In Cost
Asking price$977,174
IMT — transfer tax (non-resident 7.5%)$73,288
Stamp duty (0.8%)$7,817
Notary + registry$2,174
Legal$12,020
Furnishing + STR launch$27,174
All-in cost$1,099,647

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Lagos.

$5.9M$4.5M$3.0M$1.5M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $899K
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 16: rental income alone has repaid the full purchase price.
2x return
Year 10: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.1M
+22%
Rental Income
+$252K
Total Position
$1.3M
+50%
8.4%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$543K
Total Position
$1.9M
+108%
7.6%/yr
Year 20
Capital Value
$2.0M
+119%
Rental Income
+$1.3M
Total Position
$3.2M
+261%
6.6%/yr
Year 30
Capital Value
$2.9M
+224%
Rental Income
+$2.3M
Total Position
$5.2M
+475%
6.0%/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
Good
5.3% annual return
Occupancy
Average
57% average occupancy
Nightly Rate
Strong
$471 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Average
181 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $471 — 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 57% — 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

37% occ.
5.0%
$4,061/mo
47% occ.
6.3%
$5,151/mo
57% occ.
7.7%
$6,240/mo
current
67% occ.
9.0%
$7,330/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.