Construction Resumed in Summer 2023 After a 15-Year Suspension Linked to PAEF Measures
About 15 years ago, the construction of a golf course in Ponta do Pargo was first announced, and work soon began. However, the project was suspended under the financial adjustment program known as PAEF. After years of inactivity, machines returned to the site in the summer of 2023, restarting development in the area. Since then, the change has reshaped the real estate market around the site, drawing new interest from buyers and investors.
Consultant Says Some Plots Rose From €50,000 to €100,000 in Market Value
Local real estate consultant Marco Irineu Pestana explained that land with permission for construction has seen its price nearly double in the past two years:
If a plot was worth €50,000, it is now worth €100,000
noting that the increase can be 100% or more compared with the pre-construction period. Pestana added that the rise is particularly strong in plots where authorities allow building, making them attractive to both private buyers and developers.
Foreign Investors Increasingly Turn to Rural Tourism and Local Lodging Opportunities
According to Pestana, foreign investors are now the main buyers of plots in the area. Many are seeking opportunities to build rural tourism units or local lodging, taking advantage of the expected growth in visitors once the golf course is completed. He also noted that Americans in particular show strong interest, comparing the travel time to Madeira with the type of long domestic flights common within the United States. Pestana argued that the relative accessibility in terms of flight time from the United States makes the island competitive for overseas investment.
New Hospital in Santa Rita Adds to Momentum of Regional Property Development
Beyond Ponta do Pargo, Pestana highlighted that wider infrastructure projects are also drawing real estate activity. The new Madeira Hospital in Santa Rita is creating a new central point in the region, he said, and that is bringing additional investment into nearby areas. Together, the golf course and the hospital are seen as key developments that are shaping the island’s property market.
Source: RTP Madeira
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