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Real Estate Market in Madeira Island - Insider Guide

Real Estate Market in Madeira Island - Insider Guide

Madeira Island's real estate market has seen a big increase in the last few years. It now offers a wide range of investment properties at prices more budget-friendly than the Portuguese mainland. Located just under two hours by plane from Lisbon, Madeira has been named the "World's Leading Island Destination" by the World Travel Awards from 2015. The island's housing market is divided into four main areas: Funchal (the capital), the sunny southern coast, the northern coast, and Porto Santo Island.

Real Estate Market in Madeira Island

In 2018, the average rent for new leases in Madeira was EUR 5.15/m2, higher than the national average. This rank placed Madeira as the second-highest region in Portugal for rental income. Also, Madeira's housing prices were always among the top 3 in the country. This means there are many great chances for those looking to buy property in Madeira, from luxury homes to cute villas for sale.

Key Takeaways

  • Madeira Island's real estate market offers diverse investment opportunities at competitive prices
  • The island is divided into four main areas: Funchal, the southern coast, the northern coast, and Porto Santo Island
  • Madeira boasts the second-highest median rental income in Portugal
  • The median housing price in Madeira consistently ranks among the top 3 regions in the country
  • Opportunities range from luxury homes to charming villas for sale
  • Madeira's thriving market attracts investors and property buyers alike

Why Madeira is an Attractive Real Estate Destination

Madeira is a beautiful Portuguese archipelago in the Atlantic Ocean. It's a top choice for people looking to buy homes or invest. The island's stunning scenery, great weather, low living costs, and stable economy attract many. They find a perfect mix of beauty, affordability, and life quality there.

Beautiful Natural Landscapes

Madeira is famous for its rugged coastlines, lush mountains, and vibrant green plants. The volcanic land is home to unique flora. It feels like stepping into a storybook with its high peaks and colourful gardens. Walking around these magical places is truly memorable.

Pleasant Climate

The island enjoys mild weather all year. This makes it perfect for outdoor fun and eating outside. Summers see an average of 26°C, great for sunny adventures. Late summer to early autumn is particularly enjoyable with its warm light. The climate is just right for year-round exploring.

Low Cost of Living

Madeira's living costs are lower compared to many other places in Europe. This means you can have a great life without spending too much. Groceries, electricity, and restaurants are pocket-friendly. Even though it's getting popular, renting a place here is still cheaper than in other cities. This lets people enjoy more of their favourite activities.

Expense Madeira London
Rent (1-bedroom apartment) €450 €1,750
Utilities (monthly) €100 €200
Meal at a local restaurant €10 €25

Stable Economy

Madeira's economy is solid and diverse. It's not just about tourism or real estate; there's also farming and tech. This mix supports the economy well. It also makes property investment in Madeira a good choice. The island's growing economy is a good sign for anyone thinking of investing in real estate there.

To sum up, Madeira is a dream for anyone wanting a beautiful, affordable place to live. The island’s gorgeous land, perfect weather, low costs, and strong economy offer an amazing opportunity. Whether you want to invest or find a new home, Madeira's real estate market is full of promise.

Overview of Madeira Real Estate

Madeira's real estate market is full of diverse properties for different tastes and budgets. From snug apartments to grand villas and quaint townhouses, there's a lot to choose from. You might be looking for a permanent home, a holiday spot, or an investment. Knowing the market is key to picking the right place.

Average Home Values

The cost of homes in Madeira changes by where they are and what they are. In Funchal, the capital, the typical cost per square metre is €2,385. In February 2024, the median price for a home in Funchal was €511,900. This was 23.8% lower than the month before. Back then, homes were selling for €261,000. These numbers show how prices vary in Madeira's biggest city.

Madeira property types

Popular Property Searches

People looking for homes in Madeira often want ocean views. They love houses by the sea or on hills. Modern, big villas near golf are also in high demand. But some like unique or traditional homes, like those in Ribeira Brava. Others look for apartments in Funchal with great balconies. If you want a family home, being close to schools and services is important.

Property Types

Madeira has a mix of properties for different tastes. There are:

  • Apartments: Great for easy living, with small flats to big penthouses.
  • Villas: These big houses often have gardens and pools, perfect for luxury living.
  • Townhouses: They offer the best of both worlds, convenience, and privacy. Many look like traditional Madeiran homes.
  • Plots of Land: For building your dream home, there are plots all over the island.
  • Traditional Houses: "Quintas" offer country living with old-world charm and plenty of space.

Home Values in Nearby Areas

While Funchal is pricier, nearby towns offer more affordable options. Places like Calheta, Santa Cruz, and São Vicente appeal to different budgets and tastes.

Area Average Price per m² Median Sale Price
Funchal €2,385 €511,900
Calheta €1,850 €395,000
Santa Cruz €2,100 €450,000
São Vicente €1,600 €340,000
Ponta do Sol €1,950 €415,000

Exploring Madeira's property market can help you find the perfect home on this beautiful island.

Benefits of Investing in Madeira Properties

Choosing to invest in Madeira properties brings many benefits. The island's beauty and views of the Atlantic Ocean make it extraordinary. You can find everything from villas with big gardens to cosy apartments.

One key advantage is the good income from renting out properties. Tourists love to visit, so there's always a demand for places to stay. This means you can earn money without much effort. Madeira's nice weather, beautiful scenery, and rich culture attract visitors worldwide.

The island's economic strength and attention to its environment make investing here smart. Properties have been increasing in value steadily. So, investing here not only gets you a beautiful location but also a solid chance to gain in the long run.

The benefits of investing in Madeira properties are clear: a stunning location, diverse property options, strong rental income potential, and a stable, growing market. As a real estate investment destination, Madeira offers a compelling combination of lifestyle appeal and financial rewards.

Madeira has a great system for buying property, making the process easy and clear. It also has good facilities and schools, which is good for families and living comfortably.

If you like hands-on investing, Madeira welcomes your development and renovation projects. There's a big demand for new living spaces here. So, you can put your creativity to work and make good money.

In conclusion, Madeira is a top choice for investors wanting beauty and a financial upside. The mix of gorgeous nature, varied property choices, and a growing market is hard to beat.

Factors to Consider When Buying Property in Madeira

When looking for a place in Madeira, think about many things. Your choice can be affected by the location, your budget, and how close you are to shops and services. It's key to work with experts in real estate to make the best choice when finding a home or an investment on the island.


Choosing your Madeira property's location is crucial. The island has many different places, from the lively capital of Funchal to the peaceful coastal spots like Calheta and Ponta do Sol. You should pick a place that fits your lifestyle well. Think about the views, how close you are to important places, and how easy it is to get around when picking your property's spot.


Knowing what you can spend on a property in Madeira is vital. The price can change a lot based on where, how big, and what type of property you want. Make sure you look at your finances closely and think about other costs, like taxes and fees. There's a wide range of properties in Madeira to suit all kinds of budgets, from cheaper flats to more expensive houses. Look into different ways to fund your purchase, like loans or mortgages, to match your financial plans.

Madeira property amenities

Access to Amenities

Don't forget to think about how easy it is to get to the things you may need every day when buying in Madeira, especially if you're planning to stay there for a long time. Check out how close you are to schools, hospitals, shops, and transport. Also, consider what you like to do for fun, whether it's going out to eat, working out, or enjoying cultural spots. Funchal has the most amenities, but other areas might be more relaxed. Living close to what you need most can really make your time in Madeira better.

Madeira Real Estate Agents

Choosing a good real estate agent in Madeira can make buying a property much easier. They know a lot about the island's housing market, the laws, and how things work. They can help you find homes that fit your wishes, set up viewings, and navigate paperwork and negotiations. Plus, they can share tips on the local life and how to invest well. Be sure to go for an agent who is well-trusted and has happy clients.

Factor Importance Considerations
Location High Lifestyle preferences, proximity to amenities, views, accessibility
Budget High Property prices, additional costs, financing options
Access to Amenities Medium to High Schools, healthcare, transportation, shopping, entertainment
Real Estate Agents Medium to High Local knowledge, property search, legal assistance, community insights

Thinking about these factors and working with people who truly know Madeira can help you buy your ideal home or investment. This way, you'll get somewhere that not only meets your needs but also makes you really happy.

Top Areas for Real Estate in Madeira

Madeira is a beautiful Portuguese archipelago in the Atlantic Ocean. It’s now a top choice for people wanting to invest or buy homes in paradise. It has stunning landscapes, great weather, and a strong economy. This makes it a perfect place for finding your dream home or a good investment. Now, let's check out the best areas for real estate in Madeira.


Funchal, the capital city of Madeira, is perfect for those looking at Funchal real estate. It has a wide variety of properties. You can find everything from modern Funchal apartments with sea views to fancy Funchal villas in nice areas. Living in Funchal means you get to enjoy city life and be surrounded by natural beauty. It's a great choice for both buyers and investors.


Calheta properties are very popular because of the area's beauty and laid-back vibe. Here, you can choose from traditional Calheta houses to modern Calheta villas with ocean views. Living in Calheta Madeira gives you access to pretty villages, green landscapes, and a golden sandy beach. It's perfect for a quiet home or holiday spot.

Santa Cruz

Many people love Santa Cruz Madeira properties for their amazing sea views and nice beaches. You have lots of choices, from modern apartments to big houses in Santa Cruz, including some with private pools. Santa Cruz is near Funchal and the airport, making it handy for both locals and visitors.

São Vicente

São Vicente real estate offers a peaceful and natural setting for those wanting a quiet life. You can find everything from traditional houses in São Vicente to modern São Vicente villas with ocean views. São Vicente is known for its green valleys, rocky coast, and lovely villages. Places like the São Vicente Caves and the Laurissilva Forest are nearby too. This forest is a UNESCO World Heritage Site.

Ponta do Sol

Ponta do Sol properties are in demand because of the sunny weather, pretty beaches, and charming villages. In Ponta do Sol, you can choose from traditional houses in Ponta do Sol Madeira to modern Ponta do Sol apartments and villas. Its historical centre, with its colourful buildings and cobbled streets, makes it even more attractive. It’s a great place for real estate buyers in Madeira.

Municipality Key Features Property Types
Funchal Capital city, urban amenities, natural beauty Apartments, villas
Calheta Stunning landscapes, laid-back lifestyle, sandy beach Traditional houses, modern villas
Santa Cruz Coastal views, beaches, excellent infrastructure Apartments, houses, villas with pools
São Vicente Rural setting, lush valleys, natural attractions Traditional stone houses, modern villas
Ponta do Sol Sunny climate, beaches, picturesque villages Traditional houses, apartments, villas

Looking into Madeira real estate? It’s key to explore the top areas. See which one fits your taste, budget, and lifestyle best. Whether you seek bustling city life in Funchal, a quiet haven in Calheta, or a blend of nature and comfort in Santa Cruz, Madeira has something for everyone.

Tips for Finding the Perfect Property in Madeira

Looking for the right property in Madeira starts with knowing what you need and like. Make a checklist of what you want, like the number of bedrooms and if you want a garden. Use the internet and talk to local agents to find homes that match your list.

Before seeing places in person, check them out online. Virtual tours and good photos can show you a lot about a house or flat. They help you understand its layout, condition, and if it feels right for you.

Also, think about where the property is. Consider how easy it is to get there, if it’s a noisy area, and if it’ll become more valuable over time.

Don’t hurry when searching for a property in Madeira. Take time to look at different options and get all the details before making a deal. This involves looking at the local market, price comparisons, and the property’s potential for making money.

To buy the right property in Madeira, it’s wise to have a skilled real estate expert by your side. Choose an agent who knows the area well and has a good history. They'll help you with the legal and money parts and suggest the best places to buy based on what you want and can spend.

Finding the ideal property in Madeira means being patient, thorough, and clear about what you need and like. With these tips and the help of real estate pros, reaching an informed decision is within reach. This way, you can find the perfect spot to live or invest in this stunning destination.

For more help in your search, see this table. It offers helpful suggestions for your Madeira property hunt:

Factor Description
Location Think about how close the property is to places you use a lot, like public transport.
Budget Create a budget and include extra costs, such as taxes and upkeep.
Property Type Choose the kind of property that fits what you need, such as a flat, house, or townhouse.
Condition Check the property’s shape. You might need to do repairs or upgrades.
Legal Aspects Make sure everything in terms of the law is correct. This includes permits and documents.

By keeping these points in mind and working with a real estate expert, you’ll find your way through Madeira’s property scene smartly. You can land the perfect place or great investment that fits your dreams and goals.

Top Luxury Real Estate Options in Madeira

Madeira's real estate market is brimming with high-end options appealing to discerning buyers. Oceanfront villas and luxury golf residences are some highlights. This guide will delve into the best luxury real estate options in Madeira. It will highlight prime locations, luxurious amenities, and extravagant styles.

Waterfront Properties

Along Madeira's coast lie some of the world's most exclusive waterfront homes. These include oceanfront villas and beach apartments. They offer stunning vistas of the Atlantic and direct beach access.

Picture waking up to gentle waves and sipping coffee on a terrace. These coastal homes come with perks like infinity pools and outdoor kitchens. They're designed for immersing into Madeira's natural splendour.

Golf Course Properties

For those who love golf, Madeira has upscale properties near top courses. These homes offer beautiful views of the greenery. They come with more than golf - there's access to fine dining and fitness centres.

Residents can play on famous golf courses that boast designs by top architects. Whether you play or prefer the serene setting, Madeira's golf homes are perfect. They combine luxury with beautiful scenery.

Contemporary and Luxurious Homes

The market also features modern homes at the forefront of design. These properties are all about elegance with their clean lines and spacious designs. They come with the latest in technology for comfort and style.

Many of these modern homes also focus on outdoor living. Think infinity pools, lush gardens, and vast terraces. This design allows residents to enjoy Madeira's weather and views to the fullest.


Madeira's penthouses are the height of luxury in the city. Located in Funchal, they offer expansive space with amazing natural light. Private rooftop terraces are perfect for hosting or relaxing.

Penthouses are designed with the finest materials and appliances. They are the epitome of sophistication and style on the island. These apartments are truly luxury living at its best.

Property Type Key Features Prime Locations
Waterfront Properties Direct ocean access, infinity pools, high-end finishes Funchal, Calheta, Ponta do Sol
Golf Course Properties Stunning golf course views, exclusive amenities, spacious living areas Palheiro Golf, Santo da Serra Golf Club, Porto Santo Golf
Contemporary Homes Clean lines, expansive glass walls, smart home technology, outdoor living spaces Various locations across Madeira
Penthouses Spacious living areas, private rooftop terraces, luxury finishes, panoramic views Primarily in Funchal

Whether looking for a seaside retreat, a golf lover's dream, a modern home, or a penthouse with amazing views, Madeira has it. With its beauty and variety in property, it's a top spot for luxury living.

Investing in Madeira

Choosing to invest in Madeira's real estate market is a smart move. It's a stable place that can also bring in good profits. The island's rise as a top spot for tourists, along with its tax benefits, has made it very popular for buyers. Madeira's real estate market has been growing strong. People from both inside and outside the country are interested in buying here.

One big plus of investing in Madeira is its tax system. Foreign investors get to pay less tax here, helping them make more money. Being a free trade zone can mean more opportunities for businesses and those looking to start one. The island is a great spot in Europe, making it easy to reach many important cities. This all makes Madeira a top choice for those wanting to invest.

It's vital to work with local experts when thinking of investing in Madeira. They know the market well and can guide you on where to invest. You might be after a holiday home that also brings in rental income, or a property to keep for a long time. Madeira has many options for different investment plans and budgets. With its breath-taking scenery, strong economy, and attractive perks, Madeira is a dream spot for smart property investors.


What are the average home values in Madeira?

In Funchal, the average price per square meter is about €2,385. The median sale price for homes in February 2024 was €511,900.

This was a 23.8% decrease from the previous €261,000 month's price.

What are the most popular property searches in Madeira?

People often look for Madeira homes with beautiful views.

They prefer oceanfront locations or those on high ground. Luxury villas close to golf courses are also in high demand.

What types of properties are available in Madeira?

The real estate market in Madeira is quite diverse.

You can find everything from apartments to villas and townhouses. There are also plots of land for development.

Those who prefer traditional living might like the region's old houses and country estates. For those after modern living, there are new villas and ocean view apartments.

What are the benefits of investing in Madeira properties?

Investing in Madeira properties has many advantages.

You can enjoy stunning views and a variety of property options. There's also potential for good rental income.

Plus, you get to own property in a stable and growing market.

What factors should I consider when buying property in Madeira?

Choose your property based on the location, budget, and amenities you need.

Remember to include extra costs like taxes and renovations in your budget.

Ensure schools, healthcare, and transport links are nearby. And working with a trusted real estate agent can make the process smoother.

What are the top areas for real estate in Madeira?

Funchal is a top area, combining city life with nature. Calheta is known for its beauty and relaxed lifestyle.

Santa Cruz boasts great coastal views and infrastructure. Meanwhile, São Vicente and Ponta do Sol are picturesque.

What are some tips for finding the perfect property in Madeira?

To find your ideal home in Madeira, list what you need. Use online sites and local agents for help.

Virtual tours and detailed photographs can be very useful. Take your time and don't rush the decision.

And always work with a reputable real estate agent to guide you.

What are some luxury real estate options in Madeira?

Madeira's luxury options include seafront homes and golf course properties. You can also find modern houses and penthouses.

These properties often have impressive designs and features for high-end living.