Why Invest in Madeira? The New Paradise for Real Estate
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Why Invest in Madeira? The New Paradise for Real Estate

Mahaut Fauquet
-
Modified on
11/20/2024
Madeira
Summary
Why Invest in Madeira? The New Paradise for Real Estate

Located off the coast of Morocco in the Atlantic Ocean, Madeira is a Portuguese archipelago that is highly sought after for real estate investment. Why? For its subtropical climate, diverse landscapes, and exceptional quality of life on one hand, and its attractive prices, variety of properties, and tourist appeal on the other. Whether you are looking for a second home, a retirement retreat, or a rental income opportunity, Madeira is an excellent place for you!

This article explores the recent changes that make this island even more attractive to investors, while highlighting the lasting benefits of buying real estate in Madeira.

7 Reasons to Invest in Madeira

1. A Growing Real Estate Market

The real estate market in Madeira has shown signs of steady growth with prices still relatively affordable compared to other Portuguese tourist regions such as Lisbon, Porto, or the Algarve. With the economic crisis hitting Europe, prices have slightly decreased this year, offering a very good opportunity for potential investors, both local and international.

House in Funchal
House for sale by JLL on Green acres

2. Security and Stability

 Portugal and its archipelagos are safe regions with political and economic stability, which is an important factor for real estate investors looking for long-term stable returns.

3. Tourism Growth

Madeira, in addition to its sublime landscapes, beaches, and welcoming villages, has a considerable asset: its subtropical climate ensures mild temperatures all year round, which guarantees a constant influx of visitors in all seasons. This creates a stable demand for short-term rentals and can make real estate investments lucrative, especially in the seasonal rental sector.

landscape photo Madeira

4. The Rise of Digital Nomads and Remote Work

With the rise of remote work and the growing popularity of digital nomads, the island has implemented specific programs to attract these remote workers. Modern coworking spaces and long-stay visa facilities have been introduced, making the cities even more attractive to a mobile international clientele. This new type of traveler is a great opportunity for secure short, medium, or long-term rentals.

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5. A focus on Sustainability and Ecology

Like the rest of Portugal, Madeira is committed to ecological initiatives to become a more sustainable destination. New real estate constructions must now meet strict environmental standards, promoting the use of renewable energies and eco-friendly materials. These measures are excellent news for environmentally conscious investors who want to reduce their carbon footprint.

6. An Extraordinary Quality of Life

If this investment is primarily for you, know that Madeira offers an exceptional quality of life, with a mild climate all year round, beautiful landscapes, numerous sports activities, and warm citizens. We discuss this in more detail in our article "Living in Madeira," so feel free to check it out if the idea of settling on the island appeals to you!

Photo of life in Madeira

7. Simple Purchase Process

Buying property in Portugal is a relatively simple process, here are the main steps:

  • Search for properties: on international search portals like Green-acres.com to see properties from various local real estate agencies
  • Make a reservation : unlike in other countries, it is common to make a first payment to reserve a property in Portugal. This gives time to do all the necessary checks on the property before signing the promise to purchase.
  • Sign the promise to purchase: this contract is binding on both parties and includes the payment of a deposit.
  • Taking out a loan: with a Portuguese bank. If you are a foreigner and/or have no address in Portugal, you will need to use a representative to carry out the procedures.
  • Sign the deed of sale: the signing in front of a notary, the payment of the balance and the handing over of the keys mark the finalization of the process.
House for sale by JLL on Green acres
House for sale by JLL on Green acres

In Conclusion: A Safe Investment on One of Europe’s Most Beautiful Islands

Madeira is increasingly positioning itself as a prime destination for real estate investments. Modernized infrastructure, increased commitment to sustainability, sustained tourist appeal, and opportunities for digital nomads offer a winning combination for potential buyers. Whether you are looking for a profitable investment or an idyllic place to live, Madeira offers an exceptional setting to realize your real estate projects.

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