Real Estate Market and Prices in Madeira: What You Need to Know

Madeira is a Portuguese archipelago located off the coast of Morocco in the Atlantic Ocean, known for its mild climate, spectacular landscapes, and warm hospitality. The main island, also called Madeira, attracts many buyers seeking the charm of "eternal spring" at very attractive prices.

Are you also looking to buy a house on this paradise-like island? In this article, we will explore the trends and developments in the real estate market, prices per square meter, and the best cities to live in, giving you a better understanding of the market and facilitating your search!

Current Real Estate Market in Madeira

The island's market offers a wide range of properties, from downtown apartments to villas with sea views and infinity pools. In Funchal, prices can vary significantly depending on the location and features of the property. For instance, luxury apartments can sell for around €495,000, while villas can reach €850,000 or more depending on their size and location.

Like many regions, the real estate market in the archipelago is not immune to the effects of the economic crisis. There is a decline in new property prices, reflecting a broader trend observed in Europe. This price drop can offer opportunities for buyers but also poses challenges for sellers and investors.

Currently, there is a wide range of properties available for sale. These include renovated houses, apartments with modern finishes, and luxury properties with amenities such as pools and panoramic ocean views.

Global economic uncertainty also influences the local market. Experts predict that the real estate crisis could continue until 2026, which could maintain pressure on sales prices and new constructions.

Price per Square Meter in Madeira

The real estate market in Madeira is relatively affordable compared to major Portuguese cities like Lisbon or Porto:

Where to Buy in Madeira?

The main island offers several regions, each with its own characteristics and attractions.

• Funchal: The capital of the island is prized for its dynamic atmosphere, restaurants, shops, and cultural sites. Buying property in Funchal allows you to live at the heart of the action with easy access to amenities and services.
• Caniço: Located east of Funchal, Caniço is known for its spectacular ocean views and quiet residential areas. It’s a popular choice for those seeking a peaceful setting while staying close to the capital.
• Machico: This charming coastal town offers a mix of traditional houses and modern residences. Machico is ideal for those seeking an authentic atmosphere and easy beach access.
• Calheta: Situated on the southwest coast, Calheta is renowned for its golden sandy beaches and picturesque landscapes. Properties range from modern apartments to luxurious houses with breathtaking ocean views.
• Ponta do Sol: This sunny village is famous for its mild climate and beautiful sunsets. Ponta do Sol offers a peaceful ambiance with traditional houses and modern villas.
• Santa Cruz: Close to the airport, Santa Cruz combines modernity and tradition with its charming cobblestone streets and modern amenities. It’s an excellent option for those who want to be well-connected while enjoying a pleasant living environment.
• Câmara de Lobos: This small fishing village, located west of Funchal, is known for its picturesque landscapes and authentic atmosphere. Câmara de Lobos offers a tranquil living experience with a strong sense of community.
• São Vicente: Located on the north coast, São Vicente is renowned for its lush landscapes and volcanic caves. It’s a perfect destination for nature lovers and those seeking a peaceful living environment away from the hustle and bustle.

Conclusion

The real estate market in Madeira continues to thrive, supported by strong international demand and recent developments. Whether you are looking for a second home, a rental investment, or a new life in Madeira, the island offers an enticing combination of stunning landscapes, pleasant climate, and exceptional living conditions.